Hi All,
I've got a bit of an issue with my new IO+Offset account. According to the bank, putting a lump sum into the offset account linked to my IO loan will not reduce the interest repayments - the minimum monthly repayment will not change. The offset will only have an impact if principle is payed off. When I asked why they would sell IO+Offset loans, the response was that "There is no point in having an offset if the loan is interest only".
If this is, in fact, the case with this particular lender (I'm still waiting to speak to someone who can provide more information), I'm wondering what the best course of action is. It doesn't sound like there is any use for the offset account, and we don't own a PPOR to pay down.
Cheers,
Jaz
I've got a bit of an issue with my new IO+Offset account. According to the bank, putting a lump sum into the offset account linked to my IO loan will not reduce the interest repayments - the minimum monthly repayment will not change. The offset will only have an impact if principle is payed off. When I asked why they would sell IO+Offset loans, the response was that "There is no point in having an offset if the loan is interest only".
If this is, in fact, the case with this particular lender (I'm still waiting to speak to someone who can provide more information), I'm wondering what the best course of action is. It doesn't sound like there is any use for the offset account, and we don't own a PPOR to pay down.
Cheers,
Jaz