Offset mortgage And Mortgage duration

I suppose the benefit is that you are being reminded that if you stick to the 'increased obligatory payment' you will pay your mortgage off quicker and you are less likely to drop back to the lower 25 year payment term in order to pay for a holiday, ferrari, or whatever.

In message , David writes

yes you are.

The only way I can think of where it might make a difference is if you can get a lower rate of interest on a shorter term loan. But I doubt this is likely to happen.

Tim.

Mostly, but you may find that a savings account, even offset against the mortgage, may disqualify you from means tested benefits should the need ever arise.

I've got a flexible mortgage on an interest only basis, instead of saving I just pay down the mortgage, and I can 'borrow back' overpayments if I need to. So basically the same as offsetting except that there is no real 'savings' to disqualify me from benefits.