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#2
09-12-2006, 06:33 AM
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current account and offset mortgages
Current account mortgage allow u to set off all ur savings against all the debts you owe. It basically let you combining all your debt with all of your income in a single current account and in a very large overdraft. Your salary goes in when u reduces the amount of overdraft and every time u takes money out, the overdraft increases. This means u can overpay and underpay without being penalized for it. The interest rate charged is of cheaper and variable rates say 6%.
In offset mortgages your current account, loans, saving account and card debts all are kept in separate port from ur mortgage. You then choose to set some or all these accounts off against each other. In this way u can offset ur savings and current account off against your card debts and mortgage and in terms pay less interest. by,,,,,,,,, jacobi  
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#3
05-18-2007, 10:37 AM
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A home without a doubt, would be considered an investment. You are investing in your future, and your mortgage is the payment you make on that future. But how will you do the math when it comes time to buy that home, purchase that home loan, and set yourself up in a thirty year savings plan can save you a ton of cash.
Private Mortgage Insurance, a necessary component of every mortgage purchased with less than a 20% down payment, is designed to protect the lender from default. Default in this instance means; they want their money, and because you don't have a lot to put down, they will make you pay extra for the priviledge of protecting their investment. And because you are unable to put down the "20%" that is considered ideal by the lenders, an additional payment is tacked on your mortgage until you pay enough on the home to have purchased twenty percent of it, or the value of the home has increased to meet that value bar set by the lender. If the later happens, it would be good on your part to let the lender know what has happened in your neighborhood and property values. They will point you in the right direction to getting the PMI removed. Otherwise, the lender has to take care of this business and stop your payments for insurance that is no longer needed. Once again, check with your lender on when and how this takes place. Either way, the law is on your side in this matter. But there is a way to avoid the PMI. And if the savings are worth it, they might be worth looking into.
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#4
06-22-2007, 05:00 PM
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An offset mortgage is a type of mortgage common in the United Kingdom used for the purchase of domestic property.
The key feature of an offset mortgage is the ability to reduce the interest charged by offsetting a credit balance against the mortgage debt. For example, if the mortgage balance is £200,000 and the credit balance is £50,000, interest is only charged on the net balance of £150,000. Lenders normally set a credit limit at outset of the mortgage and allow borrowers to credit and redraw up to this limit. This limit may be periodically reviewed. The lender may place restrictions on the lending limits towards the end of the mortgage term with the aim of ensuring capital repayment. However many lenders allow full drawdown up to the end date of the mortgage where the loan must be repaid. This can cause great problems for undisciplined borrowers and those approaching retirement if the lender is unwilling to extend the term (especially on the grounds of age). Some lenders have a single account for all transactions, this is often referred to as a current account mortgage or CAM.
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#5
07-25-2007, 09:49 AM
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Offset accounts usually consolidate mortgage, savings and current account under one provider. While no interest is paid on the credit balances in the savings or current account, the credits are offset against the outstanding mortgage so interest is saved on this amount.
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#7
07-31-2007, 08:21 AM
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hi
Offset mortgage is referred as current account mortgage and this type of mortgage has capacity to lessen the rate of interest. Offset mortgage offsets a credit balance against mortgage debt. lender set the limit of credit for borrowers and borrowers can credit and redraw up to that fixed credit limit.
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