YBS Static Payment arrangement

crockpot

I have today rec`d my mortgage statement and it says `Unless you have a static payment arrangement..... your mortgage will not be repaid until the contractual term end date`

This is the first I have heared of this and I will be ringing them in the morning.

Are all offsetts like this?

Thought the fact that I overpay each month, plus make additional payments and have money in my offsett savings account would mean I would repay early?

Thanks in advance

Or am I better keeping the contracual end date and a small amout outstanding incase I want to borrow more in the future?

Hope to be mortgage free in 2-3 years end date is Nov 2016

Thanks again

ptee

I got mine today also and had a think about the exact same thing. I came to conclusion that it was only relevant if you paid by Direct Debit. i.e. they will adjust (lower) your DD amount to reflect your amount owing against the term.
Did your monthly payment figure drop for this year?

Myself I make the same manual cash payment each month so I disregarded it, hope i was right

Ptee

YorkshireBoy

crockpot wrote: »

I have today rec`d my mortgage statement and it says `Unless you have a static payment arrangement..... your mortgage will not be repaid until the contractual term end date'

I think that's because they'll otherwise adjust your payment required each March so that you don't repay it early.

I have an interest only YBS offset mortgage and have also had to contact them today on receiving my statement because I thought I'd accidentally redeemed my mortgage! Because I'm offset to within 40p, and have opted for 'net payment calculation', they've told me they won't be collecting any payments from March. The form actually states "your mortgage payment from March will be £0.00"

crockpot

I rang them and they said if I set up a DD and make a `static mortgage payment` each month then next year will see my nonthly repayment stay the same or increse but it will show that my term has come down

They did confirm that i had already cut my remaining 8 years 9months down to 6 years 6 months based on me only paying themin from now on, so as I still intend to over pay i am happy.