Offset mortgage - pitfalls of using partner’s savings to offset my mortgage

HaircutHel

Hi, so I am hoping someone can advise me if this is doable (probably not!).. I have an offset mortgage. My partner has sold his property and we are planning that he moves in with me - if it goes well he will stay, if it doesn’t then he will buy somewhere new nearby. There are kids involved on both sides so we are proceeding cautiously.
Can he deposit some or all of the equity from his house sale in my linked savings account to offset against my mortgage for an interim period? (I realise this has issues in terms of trust between us! But am asking here for any issues there would be in terms of, for example, whether my lender would query where the money has come from and it be a problem that it is someone else’s, or even if there are tax implications for him as if he had put in a savings account he would have to pay tax on the interest)? Thanks, Hel

getmore4less

Which lender? some allow linked accounts from people not on the mortgage.

HaircutHel

First Direct...

Thrugelmir

Only issue relates to you not giving access to his money. Or spending it! He'll have no control it what's so ever .

Otherwise there's nothing to be concerned about.

HaircutHel

Thanks Thrugelmir. That sounds reassuring. It would really help us out because the interest I would save on the mortgage is more than he’d make in a savings account, and could be in lieu of ‘rent’. Just didn’t want to cause any issues with the bank as sadly I’m not in the habit of receiving large sums of money into my account!

robatwork

You'd become his bank in effect.

If he trusts you (which of course he should if you're taking this step) then it's not an issue. Assuming you'd give it back as and when he asks.

dimbo61

It's a pity that you did not have a offset mortgage with YBS !
They do friends and family so your partner could open an offset account in his/her name which you have no access too.
This would save you interest but your partner could take money out whenever they want

HaircutHel

That sounds like it would be ideal dimbo61, shame FD don’t offer anything similar.

getmore4less

Check if they will let you use a joint account where the joint holder is not on the mortgage.