Offset Mortgages -- the Numbers

Engeroosi

With an offset mortgage can you link a savings account which isnt in the same name as the mortgage? or does the name on the mortgage have to be linked to the names of any accounts linked to the offset?

Meeper

You can't just link random people's savings accounts to your mortgage to benefit from it, no.

getmore4less

With an offset mortgage can you link a savings account which isnt in the same name as the mortgage? or does the name on the mortgage have to be linked to the names of any accounts linked to the offset?

Meeper wrote: »

You can't just link random people's savings accounts to your mortgage to benefit from it, no.

Yes you can,

Exercise for the mortgage adviser to find the lender that provides this facility.


Barclays/Woolwich used to do this but stopped it a few years ago.

edit to add the answer :

YBS offset plus
http://www.ybs.co.uk/mortgages/types/offset/offset_plus/offsetplus_b.html
http://www.ybs.co.uk/mortgages/types/offset/offset_plus/offsetplus_s.html

LongTermLurker

Engeroosi wrote: »

With an offset mortgage can you link a savings account which isnt in the same name as the mortgage? or does the name on the mortgage have to be linked to the names of any accounts linked to the offset?

I think First Direct allow you to link family members' accounts to your mortgage iirc. Not all providers will though.

gaolin100

Let me see
this is complex
I don't think Zero divided by zero is undefined.

surpoob

Is anyone aware of any OFFSET mortgage provider that provides the facility to offset the mortgage against a CASH ISA Savings account? I believe that Woolwich/Barclays do but do any others?

LongTermLurker

surpoob wrote: »

Is anyone aware of any OFFSET mortgage provider that provides the facility to offset the mortgage against a CASH ISA Savings account? I believe that Woolwich/Barclays do but do any others?

What on earth would be the point? You wouldn't get any interest in your ISA to qualify for tax free growth, and by its very nature, offsetting cash in any account is very tax efficient.

The only possible benefit would be that you would offset your existing capital, but in the knowledge that it's never going to grow. While it might make sense if you had many years' savings and were happy with the level it's at, you certainly wouldn't start an ISA in offset mode.

getmore4less

LongTermLurker wrote: »

What on earth would be the point? You wouldn't get any interest in your ISA to qualify for tax free growth, and by its very nature, offsetting cash in any account is very tax efficient.

The only possible benefit would be that you would offset your existing capital, but in the knowledge that it's never going to grow. While it might make sense if you had many years' savings and were happy with the level it's at, you certainly wouldn't start an ISA in offset mode.

There are occations when it does make sense depends on rates.

The accumulation effect is quite small against offsetting when the rates are in favour of offseting

gadgetmind

I could be interested in a mortgage that let me offset cash ISAs. This way I could do max cash ISAs each year, have them offset against the mortage, and then get the benefit of the ISA wrappers once the mortgage was paid off, which I'd do with my pension lump sum.
Ian

Ivebeensaved

Feel like a fledgling flying amongst eagles, but looking for a bit of guidance here,...
We have an offset with 36K, nil in offset (4 yrs left) tracking BoE at 0.50% for life.
Our savings stand at 16K, 13 in Isa's, 10 @ 3.5%, 3 @ 2.9% other 3 ready to offset or save somewhere!
We currently pay £30 per month mortgage (interest) question is should we simply keep saving (£550 p month)
and pay the mortgage 0ff, which should take 3 yrs or offset the 16K saved and continue saving in Isa's or fixed rate bonds until paid off.
With the BoE rate expected to rise soon, this will have a great bearing I guess on which path to take.
Thanks for reading.

I eagerly (no pun intended) wait for eagle to swoop down and help me to flap wings and fly!... :A