Offset Flexible Mortgage - 0.74% above Base

Rogersp

I'm coming to the end of my mortgage with a BS which I've had for some time.

Reading through the paperwork I realised that I have a deal where the interest applied is 0.74% above the base rate which seems a good deal to me? Over the years I've over paid so the term has been reduced significantly.

As I'm considering buying another property, buy to rent, I'm considering a draw down against my own property to buy the same. The question I have is can I offset the interest paid on my personal mortgage against the income from the rent to buy property?

If I do not proceed with the rent to buy could I actually make cash on a draw down by investing some draw down cash and continue paying the mortgage against my own property. A so called experts says I can but I can't get the maths right ? Am I missing a trick here?

Sounds too good to be true to me.

Thank you

Thrugelmir

The question I have is can I offset the interest paid on my personal mortgage against the income from the rent to buy property?

Yes, you can. There'll need to be clear audit trail to evidence the transaction for tax purposes. .

Will your lender allow you to release equity and what at interest rate. Those are different questions. That need to be answered.