Quicky advice on Offset & Deeds

TimD_2

Can someone please advise on the following.

We have a 100K mortgage and 100k in savings. However, we will out some point need to draw at least 30Kish. So I’ve been looking at offset mortgages. I don’t want to get into the specifics, but am I correct in saying that...

A 100k mortgage + 100k savings cancels out any money owed, so in affect no charges what so ever? Except the re-mortgage costs and even so if you use the mortgage genie site the One Account @ 4.99%, discounted for 12 months has no fees attached to it. So the switch and costs completely free.

What happens if this balance turns into a positive balance e.g. 102K, does that mean we gain interest?

Also as the mortgage & deeds are in my name, (recently got married) I would like to transfer the deeds over to my wife & keep the mortgage under my name... is this possible?

Some extra details.
I work and am taxed at 40% the wife does not work, but probaly will at some point.

Thanks,
Tim

dfarry

I'm in much the same position as you.... wife doesn't work, am a 40% tax payer.... but jeez I wish I had £100K of savings. :rolleyes:

During the last year I have been actively stoozing and came to a point where I had offset more than my mortgage... however my lender (The Woolwich) isn't stupid....they do not pay any interest income when you offset more than the outstanding mortgage.... still it did save me alot of interest and wasn't even my money

silvercar

Coventry BS is the same, any money greater than your mortgage doesn't generate interest. BTW if your mortgage is totally offset you don't need to move mortgages around as the interest rate is irrelevent.