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Corsa Sport » Message Board » Off Day » House Day » Nat west 'one' accounts.... » Post Reply
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Colin |
posted on 19th Oct 07 at 16:11 |
I just put in what im going to be earning soon & it said I can pay off my mortgage in 3 months & save half of what I would be paying back!! :o :lol: | |
Robbo |
posted on 19th Oct 07 at 12:21 |
The reason why shrinkers are misunderstood is that all they are are a basic mortgage which allows overpayments, and does, indeed, encourage it... I would hazard though that the base int rate on a shrinker will be higher than a normal mortgage but the benefits are there if you can afford it | |
Robbo |
posted on 19th Oct 07 at 12:20 |
Np dude (y) | |
BigSte |
posted on 19th Oct 07 at 12:17 |
That was helpful that Robbo :thumbs: | |
Robbo |
posted on 19th Oct 07 at 10:54 |
An offset mortgage is where your savings are deducted against your mortgage when interest is calculated... therefore you receive no savings interest but your mortgage interest is less... this has the benefits of saving interest on your mortgage which 99.9% of the time will be at a higher rate than you receive on your savings. In addition you do not pay tax on your interest received... can save you thousands and thousands but onyl works of you have significant savings (ie >£5k ish) | |
Cosmo |
posted on 19th Oct 07 at 10:54 |
quote: edit: actually after re-reading (read it last night originally), yes it does :lol: [Edited on 19-10-2007 by Cosmo] | |
RichR |
posted on 19th Oct 07 at 10:45 |
this isn't a true offset mortgage though; its not the interest deduction, you essentially pay any of the wages left in your account at the end of each month off the balance of your mortgage. | |
Tom J |
posted on 19th Oct 07 at 10:41 |
yeah they are called offset mortgages, good if you are self employed and you are saving up for your tax bill at the end of the year, or you usually have a fair bit of money in your account (thousands) | |
RichR |
posted on 19th Oct 07 at 09:01 |
Is there a set up charge; if it works I can shrink my mortgage term by 18 years! and save £87k! | |
Jules S |
posted on 18th Oct 07 at 21:39 |
Just out of interest.....does anybody have one? |