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Offset Mortgages

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Comments

  • vacheron
    vacheron Posts: 2,624 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 31 March at 2:31PM

    Yes, Barclays asks that question too. Use the interest savings to reduce the monthly payment, or keep the monthly payment unchanged and use the interest savings to pay down the capital… thereby reducing the term.

    I think the OP is frustrated that Barclays are taking anything now their mortgage is fully offset. Which is exactly what will happen if they took out a repayment mortgage.

    Not convinced the OP will be back to clarify though. 😕

    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
  • Jemma01
    Jemma01 Posts: 628 Forumite
    Fifth Anniversary 500 Posts Photogenic Name Dropper

    You signed up to 100s of pounds worth of borrowing without reading the papers? 🤔

    I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.
    Mortgage debt start date = 11/2024 = 175k (5.19% interest rate, 20 year term)
    • Q4/2024 = 139.3k (5.19% -> 4.94%)
    • **/2025  = 44k       (4.94% -> 3.94%)
    • Q1/2026 = PAID    (3.94%)
  • Diaz09
    Diaz09 Posts: 9 Newbie
    First Post

    Worth checking your mortgage terms - some providers let you take a payment holiday when fully offset, but you usually need to request this rather than it happening automatically. The advantage of continuing payments as capital reductions is that you're building equity faster, but if you'd prefer to keep that cash liquid for other uses, speak to Barclays about suspending payments temporarily. Just remember you'll still owe the same capital amount if you stop overpaying.

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