home Offset mortgage savings

batucadabird

I have a mortgage that will end in three years. Ive just lost my job. Ive got a good part of the money to pay that mortgage saved (but I need to claim benefits to cover a period that I want to be self employed…start up and all that.)
I have an offset savings account linked to mortgage on my home where i live in order to save for the mortgage to be paid off. The type that takes interest off and to save to cover the interest only mortgage on the house you live. Because its accessible, do they count that as savings I must live off when i try to fill out their forms?:(

HappyMJ

Yes.

Why don't you use the money and pay the mortgage off as was the intention in the first place?

batucadabird

Well, I know thats the obvious. But Id like to keep it accessible- why? Various things. Im about 30 k short of whats needed to pay it off in three years. ideally I need to try to extend the mortgage term, I'm 37. No payslips to do it now and plans to go self employed now I have a great credit rating. Im wondering if its more intelligent to try to do a buy to let to try and get something coming in to try to extend the term on the mortgage. I then wonder how that might be counted as they assess any possibility to financial support…I can see me suddenly making 30k pa self employed in a hurry and thats what id need to do to support the family and make it to pay off the mortgage.

rogerblack

As I understand it, in the general case, money in the offset account counts.
Exceptions may be if the bank has the right to at its choosing take the money in part payment.

HappyMJ

batucadabird wrote: »

Well, I know thats the obvious. But Id like to keep it accessible- why? Various things. Im about 30 k short of whats needed to pay it off in three years. ideally I need to try to extend the mortgage term, I'm 37. No payslips to do it now and plans to go self employed now I have a great credit rating. Im wondering if its more intelligent to try to do a buy to let to try and get something coming in to try to extend the term on the mortgage. I then wonder how that might be counted as they assess any possibility to financial support…I can see me suddenly making 30k pa self employed in a hurry and thats what id need to do to support the family and make it to pay off the mortgage.

If you purchase a BTL property they will assess the equity you have in the property as capital.

You can still claim child tax credits as they do not currently count capital in the benefit calculation. However, if you make more money from your self employment than you expected you might be expected to pay it all back so I wouldn't rely on it.