Buy to Let Offset Mortgages.

alph

Hello

Can anyone please recommend a good Buy to Let Offset Mortgage?
Any links please?

I have been looking for one, but can not find.

Am going to become an accidental landlord,
I have always had an offset and know how great they are.
But can not seem to find any Buy to Let Offset Mortgages.

Thanks in advance for any help.

kingstreet

Last time this was asked, we concluded there are none available.

I've seen nothing since which suggests that's changed.

Senior_Paper_Monitor

They don't exist (unless Clydesdale still have one that reverts to offset after deal term still exists) - primarily for tax reasons I believe.


Mortgage interest is set against the income for tax purposes but there is specific requirement for such funding to be 'ring fenced' solely for that purpose with a clear audit trail, which would all 'fall apart' with funds going in and out of the offset.

HappyMJ

alph wrote: »

Hello

Can anyone please recommend a good Buy to Let Offset Mortgage?
Any links please?

I have been looking for one, but can not find.

Am going to become an accidental landlord,
I have always had an offset and know how great they are.
But can not seem to find any Buy to Let Offset Mortgages.

Thanks in advance for any help.

If you offset anything it would decrease the interest payable on the mortgage increasing your profit and increasing the tax due...so it's not actually a good idea.

You would be better off saving in a tax free ISA and keeping the interest on the mortgage as high as you can to maximize your tax deduction.

Offset mortgage also typically charge a slightly higher interest rate. You can usually find a tracker/fixed rate at a lower rate than an offset mortgage.

tonyE1

Clydesdale does seem to be the only place who does an offset BTL -http://www.cbonline.co.uk/personal/mortgages/buy-to-let-mortgages

Not paying off a mortgage to save tax doesn't make sense especially when ISA rates are pitiful. It is a bit like saying you should look for the mortgage with the highest interest rate as it will save you more tax.

Senior_Paper_Monitor

You miss the point Tony.....


The act of offsetting a part of the mortgage may* disallow the total mortgage interest amount from tax relief !!


* - take professional tax advice relating to your specific circumstanbces

getmore4less

Senior_Paper_Monitor wrote: »

They don't exist (unless Clydesdale still have one that reverts to offset after deal term still exists) - primarily for tax reasons I believe.


Mortgage interest is set against the income for tax purposes but there is specific requirement for such funding to be 'ring fenced' solely for that purpose with a clear audit trail, which would all 'fall apart' with funds going in and out of the offset.

That would be very easy to structure as capital in/out of the business just as the debt does not have to be on the property that generates the income.


The amount of interest would go up/down


Offsets need to work by net borrowing anyway to avoid the tax on the "savings interest" .


Barclays had a multi property offset allowing you to juggle the money between properties. has that gone?