Offset - how to repay capital

zacepi

Hi all,

Moving soon and looking at options. Only ever had repayment mortgages, and thinking about offset as I have some savings and will be able to save regularly even after moving.

My bank (FD) only offer interest-only offsets, how do others go about saving/investing to ensure the capital is paid off, and how to prove this to FD? Can I just overpay to reduce interest payments to 0 and then put anything left into a savings account?

tia

getmore4less

With offsets you pay interest on the net borrowing.

Some overpay as they go along some like to keep it all in the offset accounts(s) and pay it off at the end.

I chose to stick to a repayment schedule on the mortgage account with my offset mortgage.

If I ever used all the money in the offset regular payments would still pay it off.