Offset mortgage - more savings than debt questoin

[anonymous-user]

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[Fatman2]

Your bank will tell you to sort yourself out (or at least mine will)!

All lenders will be different but I'm assuming that they will be in touch to either move or unlink the account.

In the interests of still being able to access some cash though then I think it would be best (for me anyway) to maintain a mortgage but to offset say 95% of the mortgage value.

[becker-on-ph]

Some banks/lenders will not offset any of your savings against the mortgage once your savings exceed the debt :-(

[James P]

I used to have an offset mortgage with the Yorkshire BS. If savings exceeded the mortgage you were simply giving them an interest free loan.

[aclivity]

can you not simply set up another linked account, then pay into that account an amount equal to the capital. Monthly direct debit from that account, so capital and offset go down at the same rate.

Current mortgage payments (and all other savings) moved to another, interest bearing account.

[Wings]

anonymous said:

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I am in that position now with my offset mortgage, the additional monies simply earns interest, and i can still at any time withdraw both the additional savings and the original mortgage amount.

[robsti]

Wings said:

anonymous said:

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I am in that position now with my offset mortgage, the additional monies simply earns interest, and i can still at any time withdraw both the additional savings and the original mortgage amount.

+1

[Deskshare]

Im with First Direct and as of a couple of months ago my savings exceeded the mortgage amount. First Direct contacted me when this happened and told me the funds I had in the linked account that were greater than my mortgage bet would NOT earn any interest in the linked account, they told me I would need to open a second savings account and not have that linked and then more the surplus into the new unlinked savings account where I would earn interest. Pretty glad FD actually told me about it, it might be a differently policy with other lenders though.

[Iain328]

anonymous said:

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Mine too - I think they *can* charge you interest on the full facility if savings exceed debt so best get the excess out of a linked account & into an unlinked one.

[Slaav]

anonymous said:

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Double check though - I seem to remember FD savings rates are awful!

[Slaav]

anonymous said:

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DOuble check the small print and also the standard savings rates which is where 90+% of the FD savings deposits will be parked I bet?