off-set mortgage

stevros1

HI All.

We have a standard mortgage with about 250k, and have about 120k in a few savings accounts. We are looking to do an offset type mortgage arrangement with a new bank, and needed some advice on the best offsets out there. We want to leave the money in the offset to reduce the interest we pay, but ive read that the payments you make are essentially the same each month, both in amount left and amount paid, so you are effectively just 'overpaying' each month.

We dont want to just leave the savings earning very little interest, but we want to be able to pull out the savings if we need them.

Any help would be great! Thank you all

amnblog

Are you saying you want your cash to reduce your payment?

This as opposed to keep your payment where it is, making it effectively an overpayment through reduced interest?

If so, there are lenders that will do this, speak to a good broker.