First Direct pay into mortgage?

Calzor_Suzay

I have an offset mortgage, current and savings account with First Direct.

I'm a little confused over whether I need to or it's beneficial to pay money into the mortgage account.
I understand any credit balance in my Current & Savings accounts offsets against any mortgage for interest purposes but do I need to pay money into the mortgage account to reduce the capital, is it beneficial to do this and if I do can I draw the money back out again up to the original credit limit?

Or is it easier to keep the money in the savings account until at the end of the term or (or earlier hopefully) the savings are equal to the original amount borrowed and you pay it off.

WestonDave

As long as you clear the interest to ensure the balance doesn't increase it doesn't really matter whether you reduce the mortgage balance or increase a parallel savings balance. You can draw money back from the mortgage account - this can be done online so there is no "pleading" etc to be given permission, you just do it! In terms of interst cost it makes no difference - its really down to how you like to view your balances and whether it makes it easier to be reducing the mortgage rather than mentally feeling you have a growing balance which might be tempting to spend! We put the basic repayment amount into the mortgage account and only take back from it for genuine house improvements (e.g. an extension) whereas money which is a bit "grey" that we are thinking of as overpayments but might be needed say to replace the car if it dies, goes in the savings account.

Calzor_Suzay

Thanks it all makes sense
I'll probably do the same and pay into the mortgage what would normally be the monthly amount and see how we go with hopefully any surplus.