mortage overpayments?

[kaiser78]

+1 for the offset.

I am fully offset at the moment; ie my savings = mortgage debt. My IFA says I am in effect mortgage free,although nice as it sounds, I don't necessarily agree with this argument as I still have a debt.

Anyway I am also 'overpaying' £700 / month to reduce the mortgage debt and am saving a couple of hundred pounds / month in interest payments, and have reduced the term considerably

Offset is the way to go - I wish I had cottoned onto this years ago...

[downsouth]

thats the position I want to be in.

Whats your strategy now your technically in credit.

After ISA's i'm looking for other vehicles for investment

[kaiser78]

thats the position I want to be in.

Whats your strategy now your technically in credit.

After ISA's i'm looking for other vehicles for investment

Like you cash isas which form part of my offset, then stocks/shares isas and then guaranteed investment scheme / pension.

[TykeMerc]

The big pluses of an offset mortgage to me are:-

• Savings are at a much higher rate of effective interest than any no risk cash investment I'm aware of
• The "income" from the offset savings attracts no tax at any rate and doesn't need to be declared on Tax returns as it's not real it's just reducing the interest from the mortgage
• The cash offset is liquid should it be needed or just wanted for a personal project
• Having a mortgage with regular payments is no bad thing in credit rating terms, but if it's offset heavily or even completely then it's only notional
• Having an offset mortgage helps to protect the cash in the institution in the event of a bank default

It's a significant winner in my book, I can't see any point in having a mortgage that isn't offset.

[Scrag Meister]

1. Moved house last November
2. Flexible Tracker Mortgage 1 at .99% is 3x as big as, 3 Yr Fixed Mortgage 2 at 3.79% on my place in Devon that I used for the deposit.
3. Over the last year we have paid 12k off mortgage 1, and 3k off mortgage 2.

I am just about to extract the money paid off on Mortgage 1 to pay a lump off Mortgage 2, and save £26 a month interest in the process without increasing the overall debt.

Mortgage 1 payments go up a bit, Mortgage 2 payments go down a bit, but we would have been paying the capital off one or the other, and £26 pops out the other end.

Not life changing but every little helps.

Result.

[FiveTimes]

I spoke to an IFA yesterday afternoon about switching over to an offset. They mentioned that you can have a product where you can link all different types of accounts to the mortgage account.
They mentioned that you can link savings, current account and also business accounts ?

They are all treated as individual entities but have a link to the mortgage account and all go towards offsetting.

I know this has been mentioned before, but I find it hard to believe that you can link a business account to a personal mortgage account.

[MarillionFan]

I spoke to an IFA yesterday afternoon about switching over to an offset. They mentioned that you can have a product where you can link all different types of accounts to the mortgage account.
They mentioned that you can link savings, current account and also business accounts ?

They are all treated as individual entities but have a link to the mortgage account and all go towards offsetting.

I know this has been mentioned before, but I find it hard to believe that you can link a business account to a personal mortgage account.

You can only link a business account if you are self employed. You cannot link a LTD company account to your offset, they are seperate entities.

[FiveTimes]

You can only link a business account if you are self employed. You cannot link a LTD company account to your offset, they are seperate entities.

cheers MF, I recall the IFA mentioned self employed a few times and I failed to correct her.

I'd rep you but I need to spread it around first

[MarillionFan]

cheers MF, I recall the IFA mentioned self employed a few times and I failed to correct her.

I'd rep you but I need to spread it around first

Why thanks. But considering all my rep for weeks has been red!

[wantacontract]

reading your thread, am I correct in understanding you will have 30k warchest.

In which case i would pay off 10k mortgage and keep 20k in warchest....assuming for 20k can last you 6-8 months without work.