Repayment or interest only plus over payment question

Lavendyr

dbs wrote: »

Not sure how off set mortgages work entirely, it might be an option but if its difficult to understand then I tend to try and stay away from them.

I'm not sure how they could be seen as difficult to understand? You borrow £X, put down deposit of £Y, pay £Z per month on the interest and then effectively net all your other savings, current accounts etc against the balance. The idea is you build up your savings account/s to a level which will repay the mortgage. The bonus is that if you need £10k at short notice or for planned renovations, you can just pull it out.

If I were you I'd go talk to a broker about offset mortgages to see if you can get comfortable with how they work - as it does sound as though one could work quite well for you.