Offsetting and capital

johnnylyness

Can anyone help? I am selling an hotel in which I currently live and will end up with about £250k.
I have a mortgage on my old house which I'm moving back to of £70k which is on an offset basis.
Can I put the £250k in the offset account and thus effectively have no mortgage and be paid interest at mortgage rate on £180k? Would this interest be taxable. I don't want to pay off the mortgage completely as I may wish to buy another business in time to come.
Is there a better way of going about this?
:eek:

Joe_Bloggs

You can probably offset interest payments upon your mortgage by depositing 70K. You will still have to pay the original paments but they will all be capital. How the lender treats the excess depends upon terms and conditions etc.The the treatment of the remaining capital will probably not be at such a favourable interest rate and subject to tax. Ask your lender as you are in a position to negotiate better terms on your existing mortgage.
J_B.