Hello
My offset mortgage is currently doing the business for me, but is there any advantage to having more cash in my current account than the actual mortgage?
Or is the ideal to have exactly the same amount in your current account as you owe on the mortgage?
ta

you will get woeful interest on cash in excess of your debt balance. Make sure any surpluses are held somewhere more lucrative.

Surely the point of an offset mortgage is just having ‘one account’?

Mine worked a treat on my old house and had the mortgage paid off in no time. New house now and going well again. We buy everything on the credit card and pay it off before it attracts any interest.

Thanks, Stoner.
@ el_diablo – it is one account, but I still know what I’ve got and what I owe.

Eh? I have a ‘one account’ and if I owe anything, I haven’t got anything? We had paid it off about 5 years ago and just kept the account around about £500 to £1500 in credit, anything over went in to a savings account. We’ve now transferred the ‘facility’ on to another more expensive house and put the savings back in the ‘one account’ to lower what we owe and hence reduce the interest we’re paying.

Maybe ours is structured differently, we don’t have an owing and owning part, it’s just one big debt that decreases on pay day and then builds back up during the month..

I think el_diablo’s mortgage is a current account mortgage whilst offset mortgages have a mortgage and a linked current account so you owe the difference in the two. I have a Woolwich offset tracker mortgage at 0.49% over base, I could get more from a savings account than it costs me to borrow from my mortgage.

Ahh, sounds about right

That’s right, Mudshark. That’s a good rate you’ve got there. I’m with the Woolwich, and pay 0.75% above base-rate, ie currently 1.25%, which I think is pretty good.
Is that an old mortgage product? Mine’s about 11 years old, and I didn’t think I’d get something equivalent these days were I to move house.

I got for when I moved house in May 2007, had the same mortgage with the previous house but at the same rate as you I think, I did have an upfront fee though.