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Help:- Offset mortgage
snoopy78
Posts: 128 Forumite
After reading this article and reading something on Martins site the two pieces of advice contradict each other. Anyone got any idea which is the correct one?
Effectively Martin says with an offset mortgage if the bank goes under you simply offset the amount the banks owes you and the remaining amount is what you owe then. eg Mortgage of £200,000 and offset savings of £100,000 when the bank goes under I only owe £100,000.
But the article below (from Fool.co.uk another reputable site) states using above example that you’d still owe the £200,000 mortgage but would only get back £35,000 from your savings effectively writing off £65,000.
http://www.fool.co.uk/news/property-home/mortgages/2008/04/11/be-careful-with-offset-mortgages.aspx
Effectively Martin says with an offset mortgage if the bank goes under you simply offset the amount the banks owes you and the remaining amount is what you owe then. eg Mortgage of £200,000 and offset savings of £100,000 when the bank goes under I only owe £100,000.
But the article below (from Fool.co.uk another reputable site) states using above example that you’d still owe the £200,000 mortgage but would only get back £35,000 from your savings effectively writing off £65,000.
http://www.fool.co.uk/news/property-home/mortgages/2008/04/11/be-careful-with-offset-mortgages.aspx
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