Is an offset mortgage the right place to put my money?

oneborneveryminute

I drew down a further advance on the mortgage for my home and was advised by my broker to put the money into an offset account with another mortgage I have on my buy-to-let property.

I've been told that I can now access the offset loan anytime I want and will not have to worry about paying tax on the loan. The only problem is that the offset doesn't bring down my payments on the BTL nor do I get the interest.

Have I been advised correctly?

getmore4less

Who is the offset with?
You usualy have a choice on the payment for the offset funds.
reduce term or reduce payment.

You also need to make sure you still qualify for the tax relief on the cost of lending against the BTL.

what are the two interest rates on the to mortgages?

oneborneveryminute

The BTL mortgage is with Abbey. I'll get back shortly with interest rates for both mortgages but my BTL is slightly higher than my residential.

Thrugelmir

The offset facility will reduce the amount of interest you pay on that particular mortgage.

Is the BTL mortgage a repayment one?

Overall seems sensible advice.