Offset Mortgages -- the Numbers

Philycheesesteak

Plus there is the fact I'm a high tax payer so I wont be taxed on the interest of my savings...

Wizzyb_2

OMG! That is all totally over my head! But can someone help me? I have an offset mortgage - I was talked into it at the bank, and have no idea what it's all about! I have 17 months left to pay on my mortgage. I have the savings to be able to pay the lot off if I want, but am planning on moving in the next few months if I can sell my flat and want a small house instead which is going to mean paying more. As I have just split with my husband (not that he understood these things any more than me) should I pay off my mortgage and borrow again if I have to, or should I leave things be till I move? When I took out the offset mortgage a couple of years ago, I was told my mortgage would be paid off much quicker, but as things are at the moment that doesn't seem to be the case.
Any advice please?

getmore4less

Wizzyb wrote: »

OMG! That is all totally over my head! But can someone help me? I have an offset mortgage - I was talked into it at the bank, and have no idea what it's all about! I have 17 months left to pay on my mortgage. I have the savings to be able to pay the lot off if I want, but am planning on moving in the next few months if I can sell my flat and want a small house instead which is going to mean paying more. As I have just split with my husband (not that he understood these things any more than me) should I pay off my mortgage and borrow again if I have to, or should I leave things be till I move? When I took out the offset mortgage a couple of years ago, I was told my mortgage would be paid off much quicker, but as things are at the moment that doesn't seem to be the case.
Any advice please?

There is a lot in there.

1. Who is the mortgage with and how big is it and is joint?
2. What is the term? (not any short term deal) is it realy 17months?
3. What is the interest rate?
4. Any short term deal with ecr's like a discount with the current mortgage?
5. At what level are you offset?
6 are there other saveing not offsetting? ( what are they )
7. Can you offset ISAs.?
8. Whats the place worth and how much is yours?
9. Whats the next place going to cost on your own?
10 how much do you earn?

BionicBone

Information removed due to lack of responses on this thread.
BionicBone
10-Feb-2010

BikerDan

I've just finished creating my own offset mortgage (of a sort)

Firstly I continued / extended and existing mortgage that was an interest only lifetime tracker - 05% above BOE base rate - with no early repayment/exit penalties.

I then took to money and put it in an online account paying more. simples !!!

Obviously I need to keep an eye on the BOE base rate - but its a great feeling knowing the bank is paying your mortgage for once !!!

darklordhere

Hi All
I am also a bit confused when it comes to Offset mortgages.
We have a Santander flexible mortgage - Rate 3.75%
We have a savings pot along side this.
Each month when we make any overpayments they go into this savings pot while the mortgage payment stays the same and goes into the mortgage account.
We receive a deposit (Stated as overpayment) each month added into our savings pot. This I can only assume is interest at 3.75% (On 02.02.10 - £7.32 received on savings pot of £2397.37).
We have ISA's which are earning a pultry amount of .10% which we are looking to transfer but are wondering if we would be better off putting these in this savings pot which has instant access. Best transfer ISA rates that I can see are only 2.75%.
Does any one have any suggestions for me please?
Just trying to make the most of our hard earned cash!

getmore4less

darklordhere wrote: »

Hi All
I am also a bit confused when it comes to Offset mortgages.
We have a Santander flexible mortgage - Rate 3.75%
We have a savings pot along side this.
Each month when we make any overpayments they go into this savings pot while the mortgage payment stays the same and goes into the mortgage account.
We receive a deposit (Stated as overpayment) each month added into our savings pot. This I can only assume is interest at 3.75% (On 02.02.10 - £7.32 received on savings pot of £2397.37).
We have ISA's which are earning a pultry amount of .10% which we are looking to transfer but are wondering if we would be better off putting these in this savings pot which has instant access. Best transfer ISA rates that I can see are only 2.75%.
Does any one have any suggestions for me please?
Just trying to make the most of our hard earned cash!

I would ask whats going on. getting deposits could be taxable


Remember the ISA allowance is a use or lose so it is not just the interest rate to consider.

darklordhere

They dont say it is a deposit though - Just an overpayment!

jht123

:money:Help, I hope

My partner and I got a10 year offset mortgage three years ago, we were told that this would be repaid in about 7.5 years. We have just received a letter from the bank (Clydesdale) saying, that due to their mistake, if we don't increase pour payments by £16/mth it will take more than another 7yrs to pay off the debt. Any advice welcome

getmore4less

jism wrote: »

:money:Help, I hope

My partner and I got a10 year offset mortgage three years ago, we were told that this would be repaid in about 7.5 years. We have just received a letter from the bank (Clydesdale) saying, that due to their mistake, if we don't increase pour payments by £16/mth it will take more than another 7yrs to pay off the debt. Any advice welcome

How much did you borrow what was the rate and how much were you paying.
Was it fixed or variable
did you have any offset funds.


What rate is it now and what is in your offset funds.