Hi there,
So, I re-mortgaged 3 months ago, we used London and Country to advice of thebest option for us.
I wanted to have the ability to access some savings with a view to payingoff the mortgage as soon as I could. Iwanted to lower the monthly amount, and pay what I would have paid into savingsto offset against it.
This is what I wanted to do, get a repayment mortgage for (example figureshere) 150k, and let's say I had 50k in savings. Rather than pay it offdirectly, I wanted access to it in case something went wrong... (jobs etc)
I was told (by L&C) that the repayment without off setting would be(example here again) 1100 a month, and that offsetting would reduce my monthlyamount by (using above example) say 700. Great, this way I could then take that 400 a month different and push itinto savings.
We took the mortgage out, moved the savings across and then I waited to seethis months payment drop..... it didn't. :(
I called them and they explained that ... we are repaying the originalfigure (150), but the interest element would be reduced (using the aboveexample it's probably 950).
I understand fully now the mortgage I have got. It's not what I expected,and (I have it writing from L&C) not what I was sold / told.
I suppose there is nothing I can do about it as annoyingly, I was paying asimilar amount before this deal and could have just kept the savings and earnedinterest on it L