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Offset mortgage overpaying advice please
jenster2752
Posts: 2 Newbie
Hi all. I wonder if someone will be able to give me the best option here.....I'm struggling to do the maths!!!
We have an repayment offset account and have chosen to use our "savings" in that account of lower the term of our mortgage, rather than reduce the monthly payment - having, in three years, knocked the grand total of 66 days off our mortgage! We also overpay by approximately £120 pm.
It occurred to me the other day that would it be better to use the "savings" (approximately £20,000) in the offset account to reduce our monthly payment and then use the money that we save to overpay the capital off?
I'm not sure if this is a case of six of one, half a dozen of the other so if anyone can shed some light this would be greatly appreciated.
Thanks, Jenster!
We have an repayment offset account and have chosen to use our "savings" in that account of lower the term of our mortgage, rather than reduce the monthly payment - having, in three years, knocked the grand total of 66 days off our mortgage! We also overpay by approximately £120 pm.
It occurred to me the other day that would it be better to use the "savings" (approximately £20,000) in the offset account to reduce our monthly payment and then use the money that we save to overpay the capital off?
I'm not sure if this is a case of six of one, half a dozen of the other so if anyone can shed some light this would be greatly appreciated.
Thanks, Jenster!
0
Comments
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Hi there... if I've understood correctly, then your assumption is correct - it's 6 of 1 and half a dozen of the other. I recall doing the maths myself some time ago...
Best of luck with your MF journey... Lula0
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