My bank has recently reviewd my offset mortgage. Due to an inaccuracy in the way my payments were calculated combined with last years reduction in interest rates, they say my minimum payment has fallen below the level required to repay the mortgage within the agreed term. They have recalculated my mortgage balance which includes a minor refund for the interest I have paid on the incorrect higher mortgage balance caused by underpayments? To ensure the balance is repaid in the given contracted term the bank proposes to increase my payments by a substantial amount per month.
I am now totaly confused As I have approx 90% of the balance in savings offsetting the balance figure. This seems a bit of a minefield. Maybe someone out there can make the picture a bit clearer for me. Thankyou greatly.