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Offset vs pay off large chunk
rexmedorum
Posts: 782 Forumite
It looks like, when our fix ends in just over a year we will be in a position to pay off all or most of our mortgage. However we would be left with 0 emergency saving funds.
Does anybody have any experience with / knowledge off offset mortgages? Would it be possible to offset the whole amount and pay nothing (with still access if we needed it) or is there some catch I'm missing?
We could of course just pay off just a part and leave an emergency fund in our savings, although my partner feels uncomfortable without a large emergency fund (around 15k per person).
Does anybody have any experience with / knowledge off offset mortgages? Would it be possible to offset the whole amount and pay nothing (with still access if we needed it) or is there some catch I'm missing?
We could of course just pay off just a part and leave an emergency fund in our savings, although my partner feels uncomfortable without a large emergency fund (around 15k per person).
0
Comments
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Unless you already have an offset mortgage it will cost money to set up a new mortgage with a lender.
Why not pay off most of the mortgage but leave a good emergency pot.
Keep paying the normal mortgage payment for another 6/12 months.0 -
Set up costs are the down side they can be more.
With mortgage rates so low you can manage savings accounts to be interest neutral.0
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