Help! I don't know what I'm doing!

2Cats

Hi all,

I haven't posted on here for ages. Really wanting to start to pay off our mortgage but I actually don't know how....

We have an Offset mortgage with the Coventry and will be able to pay off about £500 p/m soon and, hopefully, a big chuck of money in a couple of weeks time :j .

I just need to understand: do we pay this into the Offset part of the mortgage or into the actual mortgage? Is there a difference? Should our aim be to reduce the term of the mortgage by paying into the actual mortgage or is it better to pay into the offset part?

I know this will be very obvious to many of you so sorry....but I am confused!

Any help much appreciated.

egoode

If I was you I would put the money into the offset account as it will reduce the interest you pay on the mortgage like it would if you paid it straight into the mortgage however if you need to withdraw the money at a later date you can take it out again. If you put the money directly into the mortgage you may not be able to take it out again if something unexpected comes up.

sweetdaisy

I have an Offset mortgage and it doesn't really make a difference if you put it in the Offset Account or directly overpay the mortgage ,as you are still reducing the interest. With my mortgage provider I am able to draw back any overpayments I make, however this will undo the good work that I have done.

I often take a 50/50 approach and pay 50% directly to the mortgage and 50% is put into savings.