Offset Mortgage Question

caveman38

Please guys, can you tell me. Is it possible to offset with money that is not mine, say my fathers.
If he had £50K earning 5% net but used it to offset my mortgage at 6% and I paid him the 5% and benefit by 1% for example.
Is it possible, do you have the monies in different names or would he just give me the money to use. Any advice please BTW the figures are hypothetical and would be greater.

koexelek

Pretty sure the money would have to be in your name.

All the offset mortgages I know require the savings account to be in the same names as the mortgage.

magicdogsbrain

You have a loan with the bank and you have paid some of it off - but the bank is waving some of the money you paid off under your noze and tempting you with it - saying "go on take some back - you know you want to".
Thats what an offset mortgage is - so its got to be your money - because you have paid your loan off.

Of course there is nothing stopping you from loaning that money - but its still money that is your responsibility and you have to pay back. I would take the money and put it in the offset and dont tell them its not yours!

getmore4less

caveman38 wrote: »

Please guys, can you tell me. Is it possible to offset with money that is not mine, say my fathers.
If he had £50K earning 5% net but used it to offset my mortgage at 6% and I paid him the 5% and benefit by 1% for example.
Is it possible, do you have the monies in different names or would he just give me the money to use. Any advice please BTW the figures are hypothetical and would be greater.

Barclays used to allow this but I think they stopped it, but might be worth checking.(had to be in an account at the same btanch as the borrowers offset accounts.

You can still have acounts in single names on a joint mortgage.

easiest way will be for him to give you the money but watch out for the tax implications

getmore4less

magicdogsbrain wrote: »

You have a loan with the bank and you have paid some of it off - but the bank is waving some of the money you paid off under your noze and tempting you with it - saying "go on take some back - you know you want to".
Thats what an offset mortgage is - so its got to be your money - because you have paid your loan off.

With an offset you DO NOT pay off the loan when you have money in offset accounts.

dimbo61

Sorry guys you are wrong
you can have family and friends put money into your offset mortgage
please see the yorkshire building society for more details
NET or GROSS do some reading

koexelek

dimbo61 wrote: »

Sorry guys you are wrong
you can have family and friends put money into your offset mortgage
please see the yorkshire building society for more details
NET or GROSS do some reading

Well, you learn sonething every day.

Have to say, it is an exellent idea

getmore4less

dimbo61 wrote: »

Sorry guys you are wrong
you can have family and friends put money into your offset mortgage
please see the yorkshire building society for more details
NET or GROSS do some reading

Nice find. key info is here,

http://www.ybs.co.uk/mortgages/types/offset/offset_plus/offsetplus_b.jsp
http://www.ybs.co.uk/mortgages/types/offset/offset_plus/offsetplus_s.jsp

key info max 3 offset accounts and one must be your own.

You must hold at least one offset savings account in your name and can have a maximum of three savings accounts linked to an offset mortgage. Up to two of these accounts can be offset plus savings accounts.

rates are also not that hot, not an issue if you are getting a lot of help offsetting.

Gorgeous_George

Do the beneficiary(ies) need to declare income to the taxman?

That is, dad earns 5% but should pay tax on it. OP earns 1% and may need to declare it as income.



GG

jackomdj

C&G let you have other peoples accounts set against your mortgage. Must be Lloyds TSB accounts.
Again not fantastic rate (I think it is 1/2% above BOE base rate) but as we offset about 60% of the mortgage it does not matter.

Nicky

sorry forgot to say you see all your accounts as they really are & the statement shows how they are all offset. I do a spreadsheet & am always within spittng distance of my actual quarterly balance

dimbo61

Hi guys !!!
Kdexelek - excellent idea ! great for helping kids to get on the property ladder as dad and mum can put £X of money into offset to make mortgage cheaper for kids BUT they( kids) cant access the money as its in dad/mums account.
getmoreforless - nice find, my girlfriend ( now wife) was with YBS and had an offset mortgage before we met . we have a fixed deal half way through and got a great rate. and help offsetting !
George- as no one earns any interest ! what TAX is there to pay ?