offset mortgage

hbell

We have quite a high mortgage £80,000 and a offset loan of £39,000. We at the moment pay £850 a month. Which we have been told is not enough at the moment, but we are struggling with money at the moment so the bank has said we can leave it as is until ok. The interest per month is £500-£550 a month. When does the mortgage ever seem to go down. I do not know about these sort of things and can get quite complicated. How many years do you pay interest and when should we see a difference. I think that the mortgage we have you pay 80,000 first after that is paid you pay off the loan. Think that is right.

herbiesjp

I'm a little worried here for you if I have understood this correctly.

If you have an interest only mortgage as opposed to a repyament mortgage (capital and interest) then the mortgage balance is not decreasing at all - the £80,00 will remain constant. Do you have an offset loan? Or is this offset savings or is it an endowment policy you are paying into?

I think you need to be a bit clearer if possible with the information, as it looks like you have a mortgage and a loan - but nothing to pay off the mortgage.

Please post more details

Murtle

as herbiesjp, I'm confused by this, can you provide more detail??

What is the £80,000 for?? Mortgage? Repayment or interest only
What is the £39,000 for?? offset against what?

In my eyes £850 seems a lot if you are only paying the interest.....