Mortgage Offset - Repayments Help

amnblog

Put the figures in here and you find your current payment is in the ballpark.

https://www.barclays.co.uk/mortgages/mortgage-calculator/offset-mortgage-calculator/

Remember, as your capital is reducing there is less interest due. More of your capital is generating interest for you. Barclays have your funding in savings accounts which will pay interest which will exceed the interest due on the mortgage.

If you are still uncertain write to them and have them confirm the figures in writing.

quaium

amnblog wrote: »

Put the figures in here and you find your current payment is in the ballpark.

https://www.barclays.co.uk/mortgages/mortgage-calculator/offset-mortgage-calculator/

Remember, as your capital is reducing there is less interest due. More of your capital is generating interest for you. Barclays have your funding in savings accounts which will pay interest which will exceed the interest due on the mortgage.

If you are still uncertain write to them and have them confirm the figures in writing.

Well that's interesting... The online calculator confirms what Barclays are saying.

amnblog

quaium wrote: »

Well that's interesting... The online calculator confirms what Barclays are saying.

Probably because that is where they are getting the figures from.

quaium

amnblog wrote: »

Probably because that is where they are getting the figures from.

:wall: I think I'll write to them and get everything confirmed in wrighting.

getmore4less

amnblog wrote: »

Put the figures in here and you find your current payment is in the ballpark.

https://www.barclays.co.uk/mortgages/mortgage-calculator/offset-mortgage-calculator/

Remember, as your capital is reducing there is less interest due. More of your capital is generating interest for you. Barclays have your funding in savings accounts which will pay interest which will exceed the interest due on the mortgage.

If you are still uncertain write to them and have them confirm the figures in writing.

Unless they have change the rules money in the offset accounts in excess of the mortgage gets no interest.

getmore4less

quaium wrote: »

Well that's interesting... The online calculator confirms what Barclays are saying.

If you look at that graph it also show the payment going up over the term from the current £660 up to the full £860

as the capital goes down the interest included in the full payment goes down so the amount you pay(capital) will go up


There is no interest on any surplus in the offsets.


it even explains it on the page.

Graph information:

1
At the start of your mortgage, your monthly payment would be £657.22; offset saving of £174.52 this month.

2
After 1 month your mortgage balance is now equal to your savings balance, so you can choose to settle your mortgage now. If you wish to continue making monthly payments, you will notice your capital repayments increase so that your mortgage balance can be cleared at full term of 13 years 2 months

3
Congratulations, your mortgage term has now ended and your mortgage balance is £0.00. Offset savings to date are: £14,415.39