I'm confused (woolwich offset mortgage)

montycat_2

Hello,
I recently wrote about losing my husband and,having a large amount of insurance paid out .
For temporary measures ,I have offset the mortgage with the necessary amount .Do I still need to pay my monthly payments though?
I am confused enough as it is but this really confuses me .

I am almost convinced to pay the whole lot off but still want time to think.

If this doesn't make sense please tell me.

we were paying £845 a month .Do i still need to pay that ?

Joe_Bloggs

I'm sorry for your loss of your husband. If you have an offset mortgage, as I see things, you can totally offset your mortgage capital with savings and not pay interest. However if the mortgage is a repayment type, the lender will still request payments as the mortgage capital has to be repaid at some stage . All of these payments in this situation will be capital. Without contacting your lender the payment will still be £845. You are in a position to bargain with your lender. Perhaps you were entitled to a payment holiday. Gather the facts, consider your options, contact your lender to see where you stand.

J_B.

Putting things in writing helps me to decide if I understand the situation or not. Asking questions on this forum is also an aid to understanding.

dwsjarcmcd

As Joe Bloggs says, if your savings meet the value of your mortgage, that covers the mortgage. You don't need to make payments.

If your savings don't match your mortgage you have 2 options, gross or net payments.

Gross payments mean you disregard your savings and are effectively overpaying on your mortgage, thereby reducing the debt and term etc.

Net payments take into account the value of your savings in your monthly payment thereby reducing the amount you need to pay to the lender each month.

Consider which of these suits your circumstances best and contact the Woolwich.

Hopehis helps