offset mortgage

betonit

Is this in a nutshell house offset morgages work.

You owe 200k yoy have 30k in the current account part of it.

Is the interset you pay is on 170k?


ieif your paying 1000 pm. Thats made up of principal of 200k and interest based on 170?

Time Magazine

Moving from Economics.

Colonel Sanders

betonit wrote:

Is this in a nutshell house offset morgages work.

You owe 200k yoy have 30k in the current account part of it.

Is the interset you pay is on 170k?


ieif your paying 1000 pm. Thats made up of principal of 200k and interest based on 170?

AFAIK thats exactly how it works. However there may be limits on how much can be offset (no idea if this is the case just be sure to read the fine print in the mortgage arrangement).

rameire

Colonel Sanders wrote: »

AFAIK thats exactly how it works. However there may be limits on how much can be offset (no idea if this is the case just be sure to read the fine print in the mortgage arrangement).

you can offset any amount of money against your mortgage
so mortgage balance 200000 savings balance 200000.
so the interest will be zero, and repayments will be full capital repayments,
if your savings balance goes above the mortgage balance they should give you the option to redeem your mortgage or reduce your savings balance,
as any extra money in the savings balance will not gain any interest