Moneydance and UK offset mortgage
JJ
via web
Hi guys,
Im just getting started with Money dance and the basic stuff seems
to be going ok however i cant work out how to do my mortgage.
I have a British Offset Mortgage, where the balance in my current
and savings accounts is used to offset the amount i owe on my
mortgage.
E.g. I have 80k to pay on my mortgage (interest rate 2.99% above
base, so currently 3.49%), but i have 20k savings, thus i only pay
interest on 60k of the outstanding mortgage amount.
Every month i pay by standing order 550 (more than i need to pay, so overpaying mortgage every month) into my mortgage, this will reduce the term of the mortgage. my mortgage interest and balance is calculated daily
How on earth can i explain this to lovely little moneydance?
Thanks everyone and i hope i have managed to explain it ok
Support Staff 2 Posted by Jon Hoover on 27 Jan, 2012 06:29 PM
Hi, so I am not sure if this will help or not but here is a related thread on what you are dealing with: http://help.infinitekind.com/discussions/questions/1951-entering-my... .
Off the top of my head I can't think of a terribly elegant way to deal with the offset issue, especially if the offset fluctuates with your savings. I'd be curious to hear if anyone has ideas on how to handle it all in Moneydance.
What I would probably do is create a spreadsheet that calculates and logs what is going on with the principal, interest, and particularly the offset value. Then in Moneydance create two liability accounts one on your payments going to principal and one on your payments going to interest. When you make your payments do a split and divide up the amounts as appropriate. Since it seems like the interest due may change, you'll need to change the initial liability amount on that account at times. (Select the account and go to Accounts -> Edit Account)
Well that is my guess at it but I'd love to hear from other users.
Sincerely,
Jon Hoover, Moneydance Support