Natwest offset mortgage

vwcampervan

Hello All

Could i ask does anybody on here have a natwest offset mortgage?

I currently have one and i wanted to know if it really is worth making overpayments to decrease the mortgage term and save on interest?

I'm looking at transferring money into the account daily because i have been told the interest is calculated daily!

thanks

sweetdaisy

vwcampervan wrote: »

Hello All

Could i ask does anybody on here have a natwest offset mortgage?

I currently have one and i wanted to know if it really is worth making overpayments to decrease the mortgage term and save on interest?

I'm looking at transferring money into the account daily because i have been told the interest is calculated daily!

thanks

Hi, I have a Natwest Offset Mortgage. I am not sure that it makes a big difference whether you directly overpay on the mortgage or put the money into the Offset account/s. As long as you put money in the Offset accounts, then it is working for you by reducing the interest without having to make a physical overpayment.

I do make direct overpayments as I like to see the mortgage balance reduce and I have found that by making overpayments the minimum monthly mortgage payment reduces more frequently than by just keeping the money in the Offset accounts.

On thing to keep in mind is that if you do decide to put everything towards the mortgage, rather than set some aside in Offset savings account, if for whatever reason your circumstances change and you want to have the overpayments paid back to you, you need to be able to prove how you can repay this back, so it's not 100% that you get all overpayments back in cases of emergencies. This is why I put more money into savings than I make direct overpayments.

kirstypark

Morning...I don't have a natwest mortgage, but i do have a VW campervan and loved your username. We have a T2 and she is currently the reason my overpayments have ground to a halt this year.

vwcampervan

Thank you Sweetdaisy

I wasn't sure if you were able to borrow back any overpayments that you'd made on the mortgage , or at least that is what i was told when they sold me the product!
I will have to find out.

Kirstypark:

when vw made the campervan they were going to call it the 'Geldgrube' which translates in english to 'money pit' :rotfl:

I sold my splitty to fund my business when the recession hit!
what a big mistake that was! I should have kept it and ceased trading until better days!

kirstypark

moneypit is right! We hired a splitty at easter and hated driving it - was too uncomfortable, but couldn't stop wanting one so borrowed a pile of cash to buy the bay - it's our joint mid life crisis. :rotfl: