Confused by offset mortgage quote

Jarlawuk

I've had a quote today from Natwest on their Natwest one mortgage today based on the following information

£67500 borrowing over 23 years - Capital + Interest Only
£4000 lump sum saving
£2000 salary pay in per month
£250 per month additional saving (whats left over after all bills paid + spending)

= £444 per month mortgage repayment + mortgage finished in 10 years 6 months

But having shopped around using the same information with other offset providers I get quotes of 16-22 years and some (like Coventry Building Society) have a cheaper interest rate. So I obviously must be misunderstanding something/going wrong somewhere, but I'm not quite sure where. The Natwest offer sounds great but at the same time sounds a bit too good to be true, seeing as it would reduce my mortgage term from 23 years to less than half?

My other question would be that I'm currently in the middle of the process of buying another house (£110k borrowing) - would that affect me getting a remortgage, as that mortgage is already approved and just waiting for the house sale to complete? House is on a normal mortgage and not a buy to let mortgage, as is my current mortgage.

silvercar

I'm guessing one would assume that your lump sum is used to clear your mortgage and one assumes your lump sum stays in your savings account.
Is the Coventry offset a current account? I thought they only offered savings account offsets so that may explain the difference.

On your new mortgage application, you would need to declare that you already have another mortgage. Whether the lender that has already agreed your mortgage offer would want details of this new application depends on the lender. I had a similar situation and Coventry didn't want to know.