This reduces the monthly repayments as interest is calculated daily on the outstanding balance and charged monthly.
The other good thing is that the interest saved on the mortgage rate would be higher i would think than the interest gained ion an offset account, which also generally has fees attached but not always.
Lastly, by wacking the 22% in day one......and having an approval for 76%........you can take out the 22% if and when required with no prior notice which is good.
lastly, if your approved for 76% and put in 22% day one.....u wouldn't have to physically make a repayment for quite a while if you choose to, and let them take it from the 22% each month.
...and lastly lastly...the 22% is just sitting there saving you interest while u may find another property at some stage and that 22% may come in handy at short notice.
