Overpaying the mortgage: how does this work?

[5pen]

bogwoppit said:

Welshbeef said:

http://www.woolwich.co.uk/mortgages/offset-mortgag...

Please tell me how you think any of those are not competitive?

It's still worth bearing in mind that even if I took out an offset mortgage at 3.49%, it would still make more financial sense to ignore the offset feature and put my spare cash in a high-interest savings account instead.

But if you're a 40% tax payer you'd have to find an account paying more than 5.8% to be more cost-effective than saving 3.49% on the debt. Are there 'no-strings' instant access savings accounts paying that at the moment?

I've had an offset mortgage for about 5 years now, and it's only recently with the historic low interest rates where savings rates are commonly available and better than what I was saving on the mortgage - mainly due to the fact that I was lucky enough to fix at .75% above base rate.

Re: statements - the Woolwich show all account separately. The mortgage debt and any 'linked' accounts that are part of the offset arrangement. There is also a day by day summary of debit balance, credit balance and interest saved.

[King Herald]

Horse_Apple said:

But, the joy of making the monthly overpayments is that if your circumstances change then you can control the finance, if you go and stick £20K in one hit just to get a fractionally lower monthly rate then you are unlikely to be able to gain access to those funds should the need arise.

The C&G interest only fix is one of the best products out there as it gives you total control of the capital payback each month plus the option of a significant one-off top up each year.

It's the next best thing to an offset which seems hard to find at present.

We have the standard repayment mortgage, not interest only. It has about £73k left if I remember rightly. I wasn't really planning on whacking 20k on it just yet, but there is talk of a large bonus at work next year, if I still have a job, so I may put a big chunk on it then, plus continue the extra monthly bit.

I may run the numbers and see how much monthly repayments go down per lump sum paid off.

[Horse_Apple]

King Herald said:

Horse_Apple said:

But, the joy of making the monthly overpayments is that if your circumstances change then you can control the finance, if you go and stick £20K in one hit just to get a fractionally lower monthly rate then you are unlikely to be able to gain access to those funds should the need arise.

The C&G interest only fix is one of the best products out there as it gives you total control of the capital payback each month plus the option of a significant one-off top up each year.

It's the next best thing to an offset which seems hard to find at present.

We have the standard repayment mortgage, not interest only. It has about £73k left if I remember rightly. I wasn't really planning on whacking 20k on it just yet, but there is talk of a large bonus at work next year, if I still have a job, so I may put a big chunk on it then, plus continue the extra monthly bit.

I may run the numbers and see how much monthly repayments go down per lump sum paid off.

Give them a call they are pretty good and will probably be able to give you an estimate.