Mortgage Offset - Repayments Help

quaium

Just wondering if I could get some advice on my mortgage offset I have with Barclays. I've been on the phone to them about 3 times now and I'm still confused. Let me explain...

I have a mortgage left of around roughly £119k. I have fully offset this with savings. My monthly payments have been around £660. I have around 158 months left of my mortgage term.

With my calculations if I'm paying £660 per month for 158 months it equals around £104k which falls short of my mortgage balance. How is this the case?

Having spoken to Barclays they are telling me that I shouldn't be worried and that even tho I'm paying £660 per month at the end of my mortgage term I would have fully paid off my mortgage. They are saying this is a benefit of an offset. I still can't get my head around it. It's like Barclays are paying £15k towards my mortgage for nothing!?

Are Barclays correct in what they are saying or do I have a point and I should be paying around £750 per month to fully pay off my mortgage in 158 months?

Thrugelmir

Does the £660 include the interest earnt on the offset savings.

DennisTenus

Thrugelmir wrote: »

Does the £660 include the interest earnt on the offset savings.

I didn't think you earn any interest on the offset savings?

Thrugelmir

DennisTenus wrote: »

I didn't think you earn any interest on the offset savings?

Depends on how the offset works. i.e. Interest being credited to the mortgage account.

quaium

Thrugelmir wrote: »

Does the £660 include the interest earnt on the offset savings.

I think the £660 is the monthly payment minus the interest. My contractual monthly payment is around £860.

quaium

Sorry, just wondering if anyone had any further input in to this?

getmore4less

Barclays give you a few options on your payment.

Adjust payment for the offset it will then be variable depending on offset amount.

They should adjust that at trigger points to keep it on track

Contractual payment as if you were not offset, that stays the same till trigger points.

Never drop the payment even when rates go down.

£660 won't pay off the mortgage in 158 months

I would change to the option where the contractual payment is made and you adjust your offset accounts to stay no more then 100%.

you can use the mortgage current account for the payment and as that is offset it adjust itself.


Barclays just add the net interest once a month to the mortgage account.

quaium

getmore4less wrote: »

Barclays give you a few options on your payment.

Adjust payment for the offset it will then be variable depending on offset amount.

They should adjust that at trigger points to keep it on track

Contractual payment as if you were not offset, that stays the same till trigger points.

Never drop the payment even when rates go down.

£660 won't pay off the mortgage in 158 months

I would change to the option where the contractual payment is made and you adjust your offset accounts to stay no more then 100%.

you can use the mortgage current account for the payment and as that is offset it adjust itself.


Barclays just add the net interest once a month to the mortgage account.

But speaking to Barclays they are saying if I continental paying £660 per month I will pay off the mortgage! I've augured with them that it can't and if it does it wound mean they are playing 15k of my mortgage. I'm so confused. If Barclays are saying this how do I get some guarantees!

DennisTenus

quaium wrote: »

But speaking to Barclays they are saying if I continental paying £660 per month I will pay off the mortgage! I've augured with them that it can't and if it does it wound mean they are playing 15k of my mortgage. I'm so confused. If Barclays are saying this how do I get some guarantees!

And each time you call you speak to someone different they tell you the same thing?

quaium

DennisTenus wrote: »

And each time you call you speak to someone different they tell you the same thing?

Yep, it's so frustrating. Think I might need to raise it as a complaint.

DennisTenus

quaium wrote: »

Yep, it's so frustrating. Think I might need to raise it as a complaint.

Maybe worth it to get someone to actually explain it properly

Interesting they all tell you the same thing though