Make easy money with offset

alan99_2

Hi

Dont know if it has been mentioned elsewhere.

If you have an offset mortgage set to base rates eg base plus 0.5 or 0.75 % whatever you can plonk your spare offset cash into a fixed rate at about 7% or so quickly.

Bear in mind though tax on the interest on the saving account, also it is locked in. You may argue better returns on stock market but with risks. You may get about 4.5%/5 % dividends on a mortgage rate of 3.5%.

Alan

DeepSporran

Yes, I'd thought of that. My offset mortgage is base plus 0.54% - i.e it will now be 3.54 %. So as long as I can get a gross rate of 4.425% (at basic rate tax) or 5.9% (higher rate tax) elsewhere it's worth pulling as much as possible out of the offset.

I think the 7% fixed rates will have evaporated by the time I can get the cash out of the offset, but luckily I've got an Egg saver account (easy access) at 6.3% guaranteed until next May. I knew that account would come in useful.