Cross - YBS wont allow offset ISA bundling - who does ?

gingefam

Hi,

I have a YBS Offset 5 year fixed which is due to expire in Dec 10. Followed by BoE+0.75% (3% Collar). Through stoozing etc have knocked 1/3 off my mortgage in 4.5 years.

Lots of money stoozed, but I am also building up increasing savings in it.

I have been really happy with offset (Offset running at about 45% of bal) - and with YBS whose service has been fantastic in the main.

But really frustrated that I cannot offset my ISA allowance with them. Each time I enquire they say there is no demand for this service - and some telephone agents have said, well why bother as you 0% on your savings. That is not the point. :mad:

Anybody else out there want to help me show that there would be a demand for this from their offset customers ? Otherwise I am going to have to move my account so I dont lose my ISA allowances.

Who does allow ISA bundling in the offset ? Dont want a CAM.

Thanks

getmore4less

Barclays,

Easy to do on-line you can switch in/out of the offset pool at will.

Allthough for us with a 1.45% mortgage rate we can get better elsewhere.

Thrugelmir

What are you trying to achieve by linking a cash ISA (offset) to your mortgage ?

There is no tax liability on the interest earnt on the offset balance.

If you wish to earn more money. Deposit money in an ISA earning a higher rate of interest than your mortgage, withdraw the interest as allowed and use it to pay down your mortgage.

getmore4less

Thrugelmir wrote: »

What are you trying to achieve by linking a cash ISA (offset) to your mortgage ?

There is no tax liability on the interest earnt on the offset balance.

If you wish to earn more money. Deposit money in an ISA earning a higher rate of interest than your mortgage, withdraw the interest as allowed and use it to pay down your mortgage.

Better off leaving it in the ISA.

gingefam

At this stage I'm not too worried about the rate of interest on the ISA as my priority is to pay off the mortgage within 5 years. But neither do I wish to lose my annual ISA Allowance - or my partners.

I just want the money in an ISA - to maintain the allowance, but still be able to offset it against the mortgage. When the mortgage is paid off in 5 years I can transfer all my savings in ISA pots to high paying accounts elsewhere.

It seemed simple enough logic - now I am wondering whether there is a flaw in my reasoning

Help !

Kaz2904

I'd want this service too but I can't find it anywhere at a reasonable interest rate. It looks like I will just have to keep my mortgage and my ISA separate but as I wish to clear my mortgage it means I end up not using my ISA allowance.
The reason people want to do this is because they are actually able to get their mortgage to a level whereby they are paying no interest and then when it is at a nominal zero level they would start transfering money out from their offset ISA to a better paying ISA provider. The mortgage costs less and is repaid faster and people have still been able to use their ISA allownace.

getmore4less

Barclays 2.89% £1500+ fees

Don't think there is any other cheaper.

gingefam

Thank you for the Barclays recommendation - I will have a look. Is it a CAM ? I am a bit put off by them. But that could just be lack of knowledge.

I need to balance paying off my mortgage (therefore interest rate is important) but want to keep an eye on longer term tax planning - so may be willing to pay a slightly higher rate.

But would be nice to have more than one company to consider - Does anybody know of any others ? - especially any non-CAM ones.

Thanks

dimbo61

Hi I also have a 5 year fixed offset mortgage with YBS up at Xmas which reverts to BOE + 0.75% ( 3% collar)
I have had the same problem with cash ISA,s in that a while ago I was getting 6% from my ISA but with the massive drop in ISA rates I am better off putting the money back into the offset account.
Will you want to save over £10200 each year ? 2X £5100
I have to wait until after xmas to see what rate I can get before taking money out of the offset and filling a cash ISA

getmore4less

Barclays:

Proper offsetting of multiple accounts(max I think might be 12) WHich can include ISA's

For a joint mortgage you can offset individual accounts as well as joint ones.

You will however get current accounts that you can choose not to use.
You get a mortgage current account which must be offset this accumulates an OD limit(reserve) as you beging paying off.
You can access this as well as offset funds.

Monthly statements and full online access to offset accounts(the mortgage account ballance is a day behind on-line).
Interest accumulates on the net ballance daily and added end of month. Mortgage payment is on the 16th ( not an issue since it can be from an offset account).

opinions4u

gingefam wrote: »

I have a YBS Offset 5 year fixed which is due to expire in Dec 10. Followed by BoE+0.75% (3% Collar).

With rising interest rates a certainty at some point, I would stick with this lender and this product and forget about your ISA offset irritation.

You've got a fantastic mortgage product that you really shouldn't be walking away from unless you have found that elusive long term low rate fix.