Offset Mortgages

[DimPrawn]

I've got a One Account too. It works exactly like an overdraft.

I like it better than offset accounts because there is just one account, and all your income goes straight in, reducing the debt, and saving you interest until you spend it.

Like Dim I'm vastly reducing the time to pay off the 'mortgage'.

And it's a more tax-efficient way of doing something with my cash than a building society. If I need to I can draw it back out at any time (increase the overdraft again).

Exactly as you say. My facility is £250,000 so it's like having an agreed overdraft facility for £250K.

[Doggy Styles]

I've got a One Account (formally Virgin One Account).

Paid off mortgage in 6 years as opposed to 20 years as orginally planned.

The rate is higher, but for anyone like a contractor whose income fluctuates wildly, it's fantastic.

I've got a One Account too. It works exactly like an overdraft.

I like it better than offset accounts because there is just one account, and all your income goes straight in, reducing the debt, and saving you interest until you spend it.

Like Dim I'm vastly reducing the time to pay off the 'mortgage'.

And it's a more tax-efficient way of doing something with my cash than a building society. If I need to I can draw it back out at any time (increase the overdraft again).

[ChimpMaster]

My view is to be debt free ASAP. Then you have far more disposable income and can save for the next asset purchase/investment or spend as you like or decide to work a lot less.

So option 1 s'il vous plait.

[moorfield]

I've heard two arguments about paying off debts when interest rates are low:

1)Since you have more money left after smaller interest payments, it's easy to pay off some of the balance.

2)Since you're paying much less, it's not worth paying it off.

Is there a prevailing view here on CUK?

I think for many of us it will boil down to ...

Not On Bench -> Option 1)

On Bench -> Option 2)

[d000hg]

I've heard two arguments about paying off debts when interest rates are low:

1)Since you have more money left after smaller interest payments, it's easy to pay off some of the balance.

2)Since you're paying much less, it's not worth paying it off.

Is there a prevailing view here on CUK?

[Cyberman]

Anyone got one? The Virgin Mortgage Shrinker reckons I can pay off my mortgage in under 5 years.

Has anyone with an offset actually paid off their mortgage years in advance?

I've got an offset mortgage and wish that I had had one years ago. I had always had fixed mortgages so when I had extra cash I tended to plough it into shares instead of the mortgage. History has shown me that paying off the mortgage would have been far more prudent. With an offset I reckon I would have paid off the mortgage almost 10 years ago.

[moorfield]

I've a got one and I'll probably be living off it this year.

Had a nice wedge in it until it all got spent on builders.
But at Base + 0.75% it hardly seems worth worrying about putting anything back in at the moment.

[DimPrawn]

Presumably it would be at it's most helpful if you could offset against the business account balance rather than a personal one though?

Not really (for me anyway). The main advantage is you can pay as little off or as much off as you like, as long as you cover the interest payment.

[Chugnut]

I've got a One Account (formally Virgin One Account).

Paid off mortgage in 6 years as opposed to 20 years as orginally planned.

The rate is higher, but for anyone like a contractor whose income fluctuates wildly, it's fantastic.

Presumably it would be at it's most helpful if you could offset against the business account balance rather than a personal one though?

[DimPrawn]

I've got a One Account (formally Virgin One Account).

Paid off mortgage in 6 years as opposed to 20 years as orginally planned.

The rate is higher, but for anyone like a contractor whose income fluctuates wildly, it's fantastic.

[Ruprect]

Got one, but it has a floor. Still, interest payments are down to 3% so paying off a substantial surplus. Will hopefully pay off early, but depends on whether I get benched I suppose.

[ratewhore]

Anyone got one? The Virgin Mortgage Shrinker reckons I can pay off my mortgage in under 5 years.

Has anyone with an offset actually paid off their mortgage years in advance?