Accord offset options

davidc123_2

Hi,

Does anyone have an offset mortgage with Accord?

I've got a few questions about the options they give you - i know i could phone them on monday but I'm wondering if anyone can answer them now

http://www.accordmortgages.com/documents/OffsetGuidetoOptions.pdf

So option 1 is where you register a 'net payment' amount, which is based on the offsetted mortgage balance, and it sounds like this amount remains fixed until it is reviewed by Accord.

Option 2 is where you pay a normal fixed 'un-offsetted' monthly payment, but as your savings increase then the interest portion of your payment is reducing, thereby increasing the repayment portion. Then when the account is reviewed every year they recalculate the monthly repayment based on the un-offsetted mortgage balance.

It seems to me like the only real difference between these two is the monthly repayments are calculated based on either the offsetted amount or the full mortgage balance. In both cases the interest is reduced by offsetting daily, but the payment remains constant until it is reviewed. Is this right?

I expected there to be an option that simply offsets the amount of interest you pay each month - so if I save money each month then each month my repayments will be smaller than the last - but i'm not sure they're offering that.

Thanks for any help

amnblog

You want your offset cash to reduce your monthly payments so you pay less each month rather than keep payments on full amount and pay off the mortgage sooner?