Offset Mortgage less than savings

Sunshine61

This is probably a no brainer but our offset mortgage has now come down to less than the amount of savings we have offset against it. Does that mean we are now paying no interest on our mortgage therefore there would be no benefit in paying it off? If we now overpay on it will that be to our advantage? Not great with these things but we have no other debts or credit card debt so just want to do the best for us longterm.

glosoli

If you are Offsetting the full amount, then no interest will be payable, however the advantage of you retaining the funds in your current/savings account is that you have access to these funds if and when you require them. There is no point in overpaying from that perspective as you are not saving anything by doing so, other than the satisfaction of seeing the balance of the mortgage coming down.

Furthermore, by Offsetting your funds, you are forgoing the ability to gain interest on your savings, to be sure to "skim" off any excess from your savings above the balance of the mortgage into an account which is gaining interest for you.