Case study: Sarah and Simon's story
"We've cut years and thousands of pounds off our mortgage.
"We had an £87,000 repayment mortgage and £7,000 savings. We wanted to be able to get at our savings if we needed to, but use them to our advantage in the meantime.
"So we took an Offset Mortgage. This means we offset our savings against what we owe. So we only pay interest on the difference between the two amounts: £80,000. This is saving us a total of £15,736.75** in interest on our original mortgage term, meaning we could pay it off three years and nine months early.
"The great thing is that our current, savings and mortgage accounts are still kept completely separate and we can have instant access to our savings if we need them." YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. This case history is fictitious but illustrates how this could work for you. Please read the tariff of charges. This information must be read in conjunction with our legal information. * Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Calls may be monitored and/or recorded for security and training purposes. Read call charges info. ** This is only true if your savings are not touched and the interest rate remains the same throughout the term. | Link to previous articles: Barclays Woolwich Offset Mortgage Barclays Woolwich Remortgaging Barclays Woolwich: Fixed Rate buyer mortgages Barclays Woolwich: First-time buyer mortgages Barclays Woolwich Mortgages: Buying your first home Alliance Leicester :Guide to remortgaging |
As available on Barclays Woolwich website
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