Off Set Mortgage - Will the bank make a deal?

toppy007

Folks

Due to an inheritance, I am now in the fortunate position of having the amount of savings in my off set mortgage equalling the mortgage amount. i.e i will not be paying any monthly mortgage payments if i keep the equilibrium. I don't plan to pay off the mortgae now in case I need to dip into savings for the kids education in the future.

However since the bank will not be getting any interest out of me now does anyone know if the bank would be willing to make it worth my while in me paying off the mortgage? What's in it for the bank if I keep the savings and mortgage amount the same?

Thanks in advance.

kingstreet

Make it worth your while? How?

There is no mechanism for "horse-trading" in modern banking, so you pay off your mortgage, that's it.

They won't offer you a discount, if that's what you're thinking. They accept when they launch a product that someone will cost them money. As long as enough make them money, they make a profit.

Wh05apk

You could always ask them.


Please let us know their response!

toppy007

thanks. I was thinking that maybe they wouldn't want £400K sitting around for the next 15 years not making them any money and that they would offer a discount. I'll give them a ring. cheers

JimmyTheWig

toppy007 wrote: »

What's in it for the bank if I keep the savings and mortgage amount the same?

The fact that you will use the savings (and so start paying interest) if you need to, for one.

But more relevantly, what's _not_ in it for the bank if you keep the savings and mortgage balance the same?
They're not lending you any money, as you've given it back to them in savings. So all it is costing you is the cost of sending you out a statement, etc.
Not convinced that they'd give you much of an offer to get out of that.

aliasojo

JimmyTheWig wrote: »

So all it is costing you is the cost of sending you out a statement, etc.
Not convinced that they'd give you much of an offer to get out of that.

There's always someone to burst your bubble OP.

Thrugelmir

toppy007 wrote: »

thanks. I was thinking that maybe they wouldn't want £400K sitting around for the next 15 years not making them any money and that they would offer a discount. I'll give them a ring. cheers

By depositing the money. The lender has further funds to lend elsewhere.

By offsetting the entire balance every month your mortgage will reduce by the interest credited. So you'll need to reduce the balance in your offset account. As this will earn you no interest.

PS Banks don't do deals.

toppy007

good point. thank you.

chewback

Banks do do deals. Look at the deal they did with the UK Tax payer

JimmyTheWig

Thrugelmir wrote: »

PS Banks don't do deals.

I bet people could get a good deal from their bank these days if they made an offer to redeem a low base rate tracker.

kingstreet

JimmyTheWig wrote: »

I bet people could get a good deal from their bank these days if they made an offer to redeem a low base rate tracker.

We'd have heard about it by now if it was happening.