'Offset' ISAs? are they alllowed?

masonic

Bernie wrote:

...That's exactly what we have done!

OK, OK, sloppy wording on my part. I wrote 'people', meaning 'everyone'.

Bernie wrote:

Each year, we can move cash from our offset deposit account into the tax-free shelter our ISAs ready for when they can be removed from the offset and start earning interest again. There will be an additional £30K in each ISA by then if nothing changes and we go to the full term.

I'm assuming that the rate payable on your IF ISAs is not the best on the market, so why continue to use them for funds that are not being used in the offset? You could take out a better paying ISA elsewhere for the newer funds, no? Or are you saying you aren't making any new savings you could put into another ISA?

roswell

I did it more or less took me about 2 years to get 100% offset but generaly run it above 90 % to get the best of both worlds (savings outside of offset) ... unfortunately its all gone a bit pear shaped since my last post which i need to resolve on monday or monday may see me mortgage free depending on how much BS i want to listen to.

general jist is my mortgage term has suddely reverted back to the original term and im apparently on course to pay of 1 month early instead of 7 years early not very amused.

Bernie

masonic wrote:

I'm assuming that the rate payable on your IF ISAs is not the best on the market, so why continue to use them for funds that are not being used in the offset? You could take out a better paying ISA elsewhere for the newer funds, no? Or are you saying you aren't making any new savings you could put into another ISA?

Masonic, you are correct on all counts.

When we bought the new house, it would have taken virtually all our savings to purchase outright, inc the tax-free jobs. We didn't want to be in that position and also didn't want to forfeit the hefty lump sums our lSAs/TOISA that we had painstakingly built up over many years.

After a bit of chit-chat with IF, confirming what we could do with the offset accounts, their offset mortgage provided us with all the solutions we sought.

We intend to transfer out the ISAs/TOISA out one by one to more appropriate homes as we can afford to. Until then, they will remain in the offset making us oblivious to interest rate changes.

...and we will be opening new ISA next in the new financial year (we've used this year's allowances already).
:beer: