Hi, I've just been to see a mortgage broker. We went through the various options but they came so think and fast my brain has turned to mush.
He mentioned setting up a redraw facility for my mortgage. Where if I leave extra money in my account each month it will offset the interest. I asked him would this mean my payments would slowly come down, he said it wouldn't. So I'm a bit confused as to what he means by offsetting the interest but not affecting my actual repayments. Although,as I said my brain is mush so I could have confused myself.
Can anyone explain in simple English the benefits of using this redraw facility and leaving extra money in my mortgage account each month?
Thanks,
Col
He mentioned setting up a redraw facility for my mortgage. Where if I leave extra money in my account each month it will offset the interest. I asked him would this mean my payments would slowly come down, he said it wouldn't. So I'm a bit confused as to what he means by offsetting the interest but not affecting my actual repayments. Although,as I said my brain is mush so I could have confused myself.
Can anyone explain in simple English the benefits of using this redraw facility and leaving extra money in my mortgage account each month?
Thanks,
Col