Offet, Do you pay off balance or keep in account?

crockpot

Hi

Was just woundering what most people do.

We have paid small and large amounts directly off our mortgage, but currently have some in savings in the offset linked savings account, like the idea of having some `rainy day` money.

Might have paid more off directly but my job is uncertain and do not know how long it will last, but after years as a SAHM know that we can manage on 1 wage.

phizzimum

that's the beauty of an offset!

I think it depends on whether you will be tempted to dip into your savings. could you have two linked savings accounts - one for general savings and the other a "do not touch unless it's an utter utter emergency".

if you build up your savings enough you could be completely mortgage neutral!

MBADaruma

I have an offset with First Direct. I just leave all my money in my savings account and only touch it if I need it in an emergency.

First Direct is excellent as it's a fully flexible mortgage where I can overpay as much as I like and can underpay an amount that covers just the interest for the month.

I've applied for a couple of credit cards and just starting to build my 'stooze' pot thereby creating a much larger offest allowing me to pay more off my capital and less on interest!

regards