Offset CAM a problem?

magicdogsbrain

So when the sun is shining and the birds are singing - I decide to acquire some equity in my house by re-mortgaging to an offset with the extra sitting in the account until I need it.

Then the credit crunch hits so I decide not to spend the money in the offset. After all, the offset credit in my account is just a credit facility - I owe the money to the bank right.

Now if I get made redundant and have to apply for benefits, is the amount I have offset taken as if it were savings?

I think it is - and this should be mentioned as one of the disadvantages of offset mortgages.

Will they let me pay off some of my mortgage with the offset balance and then claim for benefits - or is that treated in a similar way to spending your savings?

nannytone_2

hmmmmmm.............the only comparison i can think of is if youre a student, and loans are available but you decide not to take them........................as far as housing benefits is concerned, youre classed as having that mioney.
its still debt though isnt it?
so quite possibly, if you have access to that money you might be classed as actually 'having it'

sorry i'm not actually giving you an answer, just pondering the facts..............