remortgage problem due to my stupidity

racing_blue

Q. If someone had an offset mortgage say for £100000 and had offset £99999 of cash, would they easily be able to dip in to the dosh for reasons like this?

(My understanding is yes, but I do not have an offset mortgage although am considering arranging one next time for exactly this reason- thanks)

Flakey

Not sure i follow you?

Thrugelmir

racing_blue wrote: »

Q. If someone had an offset mortgage say for £100000 and had offset £99999 of cash, would they easily be able to dip in to the dosh for reasons like this?

(My understanding is yes, but I do not have an offset mortgage although am considering arranging one next time for exactly this reason- thanks)

No reason why you can't do this.

racing_blue

Thrugelmir wrote: »

No reason why you can't do this.

Thanks. Flakey- sorry I didn't explain well. I was asking about keeping an offset mortgage alive rather than repaying. A no-cost option to borrow a large amount of money for any reason in the future, at the prevailing mortgage rate, with no arrangement fees and no awkward questions (sounds too good to be true which is why I asked). But if it works like this I'm surprised more people don't do this rather than repay their mortgages- you never know when an unexpected opportunity might come along as the OP shows.

Flakey

I see what you mean - that makes me feel even more stupid as we only repaid our offset mortgage with intelligent finance at the end of last year!

Thrugelmir

racing_blue wrote: »

I was asking about keeping an offset mortgage alive rather than repaying.

Mortgage balance will progessively reduce as interest earnt on the offset balance is used to credit the mortgage account.

Increasingly mortgages are taken out on a repayment rather than interest only basis.

In both examples offset balance has to be reduced so to remain lower or equal to mortgage balance.

Obvious question is where the money for the offset is derived from.

racing_blue

Thrugelmir wrote: »

Mortgage balance will progessively reduce as interest earnt on the offset balance is used to credit the mortgage account.

Increasingly mortgages are taken out on a repayment rather than interest only basis.

In both examples offset balance has to be reduced so to remain lower or equal to mortgage balance.

Obvious question is where the money for the offset is derived from.

Forgive me, I am not clever with these terms. But in my example no interest is earned on the offset balance. Instead, interest is payable on the outstanding mortgage minus the offset balance. I'm talking about over time reducing that offset balance to £1 or something nominal, but not closing the mortgage account.

Reactor_2

racing_blue wrote: »

Forgive me, I am not clever with these terms. But in my example no interest is earned on the offset balance. Instead, interest is payable on the outstanding mortgage minus the offset balance. I'm talking about over time reducing that offset balance to £1 or something nominal, but not closing the mortgage account.

At the time of writing this, you can completely offset your mortgage and you don't have to close it down with FD. I know this as I am in this situation. They just send you a letter that your mortgage has been completely offset and the excess amounts in linked accounts are not getting interest.

Flakey

Thanks
I'll bear this in mind if we ever get a mortgage sorted with FD. Handy should we ever inherit another property.

themull1

How much would it cost to get planning consent?