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Offset mortgage And Mortgage duration

Hi All, I'm wondering whether my thoughts on this are right or not and thought I'd ask you 'gurus' on the matter. My question is: If I feel that I can pay off an offset mortgage quicker than the 'standard

25 year' period, does it really make sense to get a reduced term mortgage given that any surplus dosh that I may be lucky enough to accrue can be offset against the capital owed anyway?. To me it just seems that reducing the period just increases my obligatory monthly payment for no additional benefit.

Am I right on this or is this rubbish and if so, why?.

Ta, Dave

Reply to
David
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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.

Reply to
Tumbleweed

In message , David writes

yes you are.

Reply to
John Boyle

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.

Reply to
Tim Woodall

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.

Reply to
Andy Pandy

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