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Offset Mortgages

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    Offset Mortgages

    Anyone got one? The Virgin Mortgage Shrinker reckons I can pay off my mortgage in under 5 years.

    Has anyone with an offset actually paid off their mortgage years in advance?
    Older and ...well, just older!!

    #2
    Got one, but it has a floor. Still, interest payments are down to 3% so paying off a substantial surplus. Will hopefully pay off early, but depends on whether I get benched I suppose.
    "Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "


    Thomas Jefferson

    Comment


      #3
      I've got a One Account (formally Virgin One Account).

      Paid off mortgage in 6 years as opposed to 20 years as orginally planned.

      The rate is higher, but for anyone like a contractor whose income fluctuates wildly, it's fantastic.

      Comment


        #4
        Originally posted by DimPrawn View Post
        I've got a One Account (formally Virgin One Account).

        Paid off mortgage in 6 years as opposed to 20 years as orginally planned.

        The rate is higher, but for anyone like a contractor whose income fluctuates wildly, it's fantastic.
        Presumably it would be at it's most helpful if you could offset against the business account balance rather than a personal one though?

        Comment


          #5
          Originally posted by Chugnut View Post
          Presumably it would be at it's most helpful if you could offset against the business account balance rather than a personal one though?

          Not really (for me anyway). The main advantage is you can pay as little off or as much off as you like, as long as you cover the interest payment.

          Comment


            #6
            I've a got one and I'll probably be living off it this year.

            Had a nice wedge in it until it all got spent on builders.
            But at Base + 0.75% it hardly seems worth worrying about putting anything back in at the moment.

            Comment


              #7
              Originally posted by ratewhore View Post
              Anyone got one? The Virgin Mortgage Shrinker reckons I can pay off my mortgage in under 5 years.

              Has anyone with an offset actually paid off their mortgage years in advance?


              I've got an offset mortgage and wish that I had had one years ago. I had always had fixed mortgages so when I had extra cash I tended to plough it into shares instead of the mortgage. History has shown me that paying off the mortgage would have been far more prudent. With an offset I reckon I would have paid off the mortgage almost 10 years ago.

              Comment


                #8
                I've heard two arguments about paying off debts when interest rates are low:

                1)Since you have more money left after smaller interest payments, it's easy to pay off some of the balance.

                2)Since you're paying much less, it's not worth paying it off.

                Is there a prevailing view here on CUK?
                Originally posted by MaryPoppins
                I'd still not breastfeed a nazi
                Originally posted by vetran
                Urine is quite nourishing

                Comment


                  #9
                  Originally posted by d000hg View Post
                  I've heard two arguments about paying off debts when interest rates are low:

                  1)Since you have more money left after smaller interest payments, it's easy to pay off some of the balance.

                  2)Since you're paying much less, it's not worth paying it off.

                  Is there a prevailing view here on CUK?
                  I think for many of us it will boil down to ...

                  Not On Bench -> Option 1)

                  On Bench -> Option 2)

                  Comment


                    #10
                    My view is to be debt free ASAP. Then you have far more disposable income and can save for the next asset purchase/investment or spend as you like or decide to work a lot less.

                    So option 1 s'il vous plait.

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