offset questions tax?

nelly_2

I was just reading that you dont get paid interest on the money in the bank it goes against the mortgage.

Does this mean its also a way of avoiding tax on savings.

And am I right in thinking, if you have a £100000 mortgage you can just put in £100000 in the bank as fast as you can then pay off the mortgage?

silvercar

If you have an off set mortgage of £100k and savings in the off set savings account of £100k, you have £0.

I know of a couple of people that do this.

Their mortgage is completely offset, they have no mortgage payments to make each month and they have the security of knowing that money is available should they need it.

(of course they are not receiving any interest on that money.)