Offset mortgage- depositing additional funds

Glover1862

If I apply for a offset mortgage with additional funds can I simply hold the additional funds in the linked savings accounts? this way I will have the money should I need it but it won't cost me any interest, any issues with this plan? I am thinking of building an extension but just not sure when ( or if I really want to do it) and now is remortgage time so ideal time to apply for additional funds.

minimike2

Yes entirely possible.

Your only blocker will be getting someone to provide you advice to borrow money which you do not need. You will need to give a valid reason as to why you need to borrow the money. Putting it into savings just in case is hard to justify for an advisor.

Glover1862

Thanks, as I mentioned it is for an extension which I'm 90% certain I'll do just not sure when, borrowing the extra now will mean I'll know how much I can spend.

getmore4less

Offsets are ideal for this sort of situation

You still have to watch the LTV and rate boundaries.