Some Advice Please

fizzysweets

ok firstly i have never been on here before so i hope i am posting in the right place. My husband has just been promoted with his work and as of from september we will be living at the hotel where he works rent free this will be for 2 years and we are wondering what and where we should put our spare income which we will be getting from renting our house. I have talked to people about the offset mortgages and this seems to be at the moment the most popular choice but we are interested to knowhether our money would be better in a savings account ect. I hope this makes sence and thanks in advance.

mountainofdebt

Don't really know the best answer for you although if you haven't got an offset mortgage at the moment then you have to factor on the cost of changing mortgages.

Going slighly off topic we want to make overpayments on our mortgage but can only make payments of £500 or more. As we can only afford £100 per month, I've been putting this money into an ING account which earns 5%, just slightly under our mortgage rate so I guess the effect is the same. Also we're building up a savings pot just in case of an emergency in the meantime. What about doing this? Does your mortgage allow you to make overpayments - so that your term/monthly repayments reduce ?

One thing though, if you do decide to rent out your home don't forget to inform your mortgage company.

Froggitt

Make sure you dont get taxed on the accomodation as a benefit in kind......the tax on £100 a night for 2 years is rather a lot.

Downside of Offset is that its generally a higher interest rate....depends how much higher compared to the net savings interest.

Froggitt

Make sure you dont get taxed on the accomodation as a benefit in kind......the tax on £100 a night for 2 years is rather a lot.

Downside of Offset is that its generally a higher interest rate....depends how much higher compared to the net savings interest. Clydesdale looked to have a good Offset at 4.99%