advise please about what to do about mortgage

tightwadess

hi all newbie here so hope i.m posting in the correct place
scenario as follows ;
we have a completion date of 13 may 2022
we have an offset mortgage
the offset currently stands at approx 800 less than mortgage balance
we have money in other savings that would more than bring the offset level

my dilemma
do we pay the mortgage off now
do we just put the savings in the offset to bring it level then draw down on it each month to keep it level
or do nothing

the reason being we are hoping to put the house on the market soon but defendant on the house market not sure if or how long it would take to sell
we may or may not require another mortgage when we move

ViolaLass

Why not make the offset and the mortgage level, so you have nothing more to pay but you can still access the money if you need to? I see no benefit in paying the mortgage off early.

tightwadess

thanks
you say make the offset and the mortgage level which i understand and was one of my options but you say so there is nothing more to pay but surely the building society will still collect the payment each month or am i not understanding this right

ViolaLass

Assuming the bank usually collect the interest owed at the end of each month, there would be nothing for them to collect. If they do collect something, then it will reduce the capital so overall your accounts will still be balanced.

tightwadess

its a repayment mortgage and the interest is calculated daily

ViolaLass

So they'll just collect the capital part of the repayment (since there won't be any interest to pay). This will reduce your offset and your mortgage by the same amount so they will still balance each other.

tightwadess

but the mortgage payments are made by dd from a different bank altogether the offset is a linked savings account at the same place as the mortgage so would i have to draw back out of the offset each month after the mortgage dd has been paid as i believe this would if i didn't .make the offset higher in value than the mortgage balance

getmore4less

If planning on moving and will need to borrow keep the mortgage if portable.

paying it off just means getting a new one from scratch.

Why not set up an account with the lender to pay the DD then just shuffle money around, which lender some will allow yout to automate it.

tightwadess

mmm that's worth thinking about thanks the lender is the coventry the mortgage i believe is portable

tightwadess

added to say i do all my banking on line and can access my off set and mortgage account online so if it would be a case of having to draw the extra back out each month this would be no problem at all

Thrugelmir

ViolaLass wrote: »

So they'll just collect the capital part of the repayment (since there won't be any interest to pay). This will reduce your offset and your mortgage by the same amount so they will still balance each other.

There are 2 seperate transactions.

a) The monthly mortgage repayment
b) The monthly interest credited from the offset account.

So the question is. Can the offset balance exceed the outstanding mortgage balance?