Offset mortgage as savings account ?

Fly_Guy

YorkshireBoy wrote: »

With YBS's Offset Plus feature, the mother retains full control of her money and can withdraw it at any time she likes.

The OP won't even know how much is held in the account as they have no access.

Yes this is my understanding too. Mum would retain control.

Regarding how much is in the Offset+. I think she'll have to let me know how much she has deposited so I can work out how much 'interest' I owe her....

FG

YorkshireBoy

Fly_Guy wrote: »

Yes, win for mum and neutral for me was the plan. I was hoping to set it up this way precisely so that my sister doesnt think I'm profiting from our mum at my sisters expense.

Better to look at it as 'so your mum doesn't lose out', because at the moment your mum is almost doubling what she could get on her own. Your sister may feel bad that she can't help your mum out as much as you're doing! How's that for reversing the situation?

But yes, siblings must be taken into account. Years ago my retired parents wanted to do the same for me with my YBS Offset, but they didn't want any income from it (they were only losing a net 1.xx% because they had branch-based savings accounts). However, it didn't feel right to me because I didn't want to benefit over my brother. So instead I used stoozed funds from 0% credit cards to fully offset my mortgage until I'd saved enough to 100% offset it with my own money.

Fly_Guy

YorkshireBoy wrote: »

Better to look at it as 'so your mum doesn't lose out', because at the moment your mum is almost doubling what she could get on her own. Your sister may feel bad that she can't help your mum out as much as you're doing! How's that for reversing the situation?

I dont think Sis is QUITE that paranoid... but an interesting thought

As far as I see it, I'm going to have to pay for the mortgage one way or t'other. And given the options, profits for mum are better than profits for YBS.

FG

Gromitt

YorkshireBoy wrote: »

Peut-être pas pour l'OP mon ami

It's specified on the annual report, so I would think so

ejv

YorkshireBoy wrote: »

I'd saved enough to 100% offset it with my own money.

Wow:eek:...does it mean you don't pay any mortgage interest and you live in your house for "free"?Any potential problems with that?..like ...your lender charges a minimum etc?
Or have you paid it off?

Gromitt

It means the lender charges 0% interest.

I applied for a fee-free 25-year mortgage which had a higher interest rate, 5 years later I had a 100% offset. It means that I pay 0% interest. In theory I could pay it off in full as I can make unlimited overpayments, but it makes more sense to keep it as it means if I need access to the money for whatever reason, I can borrow from the bank at my mortgage rate, currently 3.5%, by simply spending whats in my offset savings account.

The only fees I paid were for the banks solicitor fees, which came to about £400.

getmore4less

If you pay interests it is taxable

if you take your mum out regularly or buy her shopping...

in practice smallish interchanges between family members rarely attracts attention.