Offset Mortgages
22 January 2006, 04:08 PM
#2
Scooby Regular
Join Date: Jun 2001
Location: Sheffield / North Wales
Posts: 1,165
Likes: 0
Received 0 Likes
on
0 Posts
Got mine with YBS, very pleased with it. Say I owe £60k and have £20k savings in the offset, I only pay interest on the £40k balance in the long run.
I still actually pay the same monthly amount (interest on the £60k + a bit towards paying it off) but at the end of the year they sum amount I owe and the interest I owe them then subtract the payments I've made and the value of interest on the offset amount. Thus leaving a lower balance owed :up:
Hope that makes sense. Basically if you have savings you don't want to commit to paying off your mortgage, and cannot get a better rate of interest on your savings than you pay on your mortgage (as is likely), offsetting your savings is a good deal
I still actually pay the same monthly amount (interest on the £60k + a bit towards paying it off) but at the end of the year they sum amount I owe and the interest I owe them then subtract the payments I've made and the value of interest on the offset amount. Thus leaving a lower balance owed :up:
Hope that makes sense. Basically if you have savings you don't want to commit to paying off your mortgage, and cannot get a better rate of interest on your savings than you pay on your mortgage (as is likely), offsetting your savings is a good deal
Thread
Thread Starter
Forum
Replies
Last Post
ossett2k2
Engine Management and ECU Remapping
15
23 September 2015 09:11 AM