CAM mortgage is now an offset mortgage

I just received a document today from first active stating that the CAM I have is now going to become an offset mortgage because it will help me make more savings...I know I'm being cynical but I'm always suspicious when the bank tells me it is for my benefit!Most of the changes seem positive but I don't know why all the account numbers are changing...is there a possibility I'll now be paying DIRT tax...

I thought that the a "current account mortgage" and an "offset mortgage" were the same thing just different names?! If there is actually a difference can somebody explain what it is?

The 'new' offset mortgage,allows you to have other savings accounts(up to 3) with first active and this is deducted from your mortgage interest payments-still haven't figured out what this means-why you would have seperate savings accounts,however when you finish paying your mortgage you do not have to close your facility account which you have to do as it stands...all very strange...Is Liam D ferguson or Sarah from Rea still around to enlighten us?

This is the way the NIB offset works. We have 5 accounts offset- 2 individual current accounts and one joint acc (although all officially joint accounts) and 2 savings accounts- one each. (again these are actually joint accounts in order to be offset though we use them seperatley). I wouldn't be too concerned- the lack of opportunity to offset savings and other accounts was the reason we switched from FA to NIB. Not sure why your acc nos would changes though. Is it a joint mortgage? With NIB all account names had to be the same as the mortgage.

I got that letter yesterday - not clear about their motive either. I can understand the benefit of having more 'savings accounts' linked to the mortgage the like NIB Offset arrangement (put minimum spending money in current, save as much as possible to savings account etc, I think..).

I got the bumfph yesterday but haven't read it yet..........!

Sarah

www.rea.ie

ok, the reason you you get a new account number is because, the first active will be moving your account to a new system , thus generating a new account number, this is because first active is part of ulster bank and the royal bank of scotland, and new services and products wil becoming into play and the old first active systems will not be able to support them.

regarding dirt tax, the same conditions will apply and no dirt will be charged on interest saved on the repayments on your mortgage.