100% Offset

DennisTenus

charlie792 wrote: »

Mine allows the monthly payment to be taken from the offset account, so the balance in the offset would be ever reducing in line with the mortgage balance.

I believe mine also allows you to pay in two ways, pay the full contractual amount including what interest I would have owed had I not been offset, or allows you to reduce the payments to whatever the capital plus interest accrued after the offset considered

Who are you with?

getmore4less

Barclays also allow you to offset ISA money so you can build up your ISA pot while being offset.

DennisTenus

getmore4less wrote: »

Barclays also allow you to offset ISA money so you can build up your ISA pot while being offset.

Ah that's exactly what I could do with!

So can I transfer isa from another provider?

And can remainder be in another savings account with them? So they take it all into account?

getmore4less

Thrugelmir wrote: »

Not a product I've every come across. Direct debit origination rules alone would make this a an overly complex product to administer. Hence why lenders prefer to collect a fixed sum every month. Only amending direct debits when there is a change in interest rates or change in product. Always recalculating the amount due to repay the mortgage balance owed over the remaining term of the mortgage.

what rules?

The DD I have with Barclays allows them to take variable amounts as and when they want including zero.

its the same what CC DD work for min payments or full payment.

There is an option on the mortgage to have the payment variable based on the actual interest for the month.

They don't need to recalculate the amount for the contractual term every month they just leave that till a trigger event.

on I/O options like FD the payment could go down to zero.


No lender should be calculating offset interest and crediting it to accounts as that would be taxable
They should all net the interest due against the interest earned then adjusting the account.

charlie792

charlie792 wrote: »

Mine allows the monthly payment to be taken from the offset account, so the balance in the offset would be ever reducing in line with the mortgage balance.

I believe mine also allows you to pay in two ways, pay the full contractual amount including what interest I would have owed had I not been offset, or allows you to reduce the payments to whatever the capital plus interest accrued after the offset considered

DennisTenus wrote: »

Who are you with?

I'm with Coventry.
Was a 5 yr fix at lower rates than I could get for a non offset mortgage elsewhere at the time so seemed like a no brainer.