2 mortgages on 1 house allowed?

ptee

Hi, I'm pretty sure this wouldn't be allowed but I currently have a fixed offset at 5.99% til 2012 with an ERC of £7k :eek: .
Now I can get a staff mortgage at work at BOE base rate with no fees, so, I was thinking would it be possible to get a second mortgage at staff rate of say £5k less than my current mortgage, pay it into the offset account and leave £5k on my current mortgage hence avoiding the ERC and saving me a couple hundred month which i could overpay.

Cheers
Pete

Kavanne

I think you have to pay tax on that somehow as it counts as a Benefit in Kind.... I don't know much about that but it's the reason I didn't take a staff mortgage.

_Andy_

No, as if you wanted a second borrowing on the house it would then be a second charge secured loan not the first charge mortgage.

ptee

Thanks, i thought it would be something like that, sounded too good/simple to be true.

Pete