I had a question on my blog regarding having other people offset your mortgage with their bank accounts.  So I thought today I would clarify.   Talk to the people who have money in their account, usually these would be members of your family, either those that are saving up for something, or those who have paid off their mortgages and have a little nest egg.   They will have it in a fixed deposit somewhere, earning a small amount of interest.  Have a conversation and find out how much interest they are earning per annum, not the percentage but the amount of money.  Also,  have a look at the interest you would be paying on that amount to the bank. Do the maths and make sure it works out for both of you.  Here is an example that I worked out using today's interest rates for both fixed term deposits and mortgage accounts. If you have a $100,000 revolving credit mortgage you have taken off a fixed mortgage.  You would have paid, at today's rate, around $300/ftnt on that amount for

After the last blog about breaking up your mortgages into revolving and fixed, it is timely to look at all the different types of revolving mortgage and what it means to you. There are three main types of revolving mortgages variable revolving offsetting I will explore each of these today so you have an understanding when making a choice. A floating rate mortgage   This is a mortgage that goes onto the floating rate at the end of a fixed term.   There is little advantage in letting this happen.  Unless you are waiting for the fixed rate to drop before you fix it, that way there is no break fee.  However, this is truly a gamble, it could always go either way. You will be paying higher (as a general rule) than the current fixed rate on this type of mortgage.   Many people over the years have allowed themselves to fall back into a variable rate as they have been too shy to approach the bank to refix.  It is important to understand the differences in these types of mortgage.   The other pr