Offset mortgage against business account ?

Tom_Walker_2

Does anyone know of a building society or bank that offers an offset mortgage which utilises the funds sitting in a business account ?

If this arrangement is legal - it could potentially save a lot of people a lot of money.......

Eydon

I looked into this years ago - afterall your VAT money just sits there, waiting to be paid, accumulating a pitiful amount of interest - and the answer then was a resounding no.

If you can find one, you'd have to declare it as a benefit in kind on your tax return I would have thought.

I'm not sure about this, but if you run your own Ltd Company you used to be able to grant director loans, which could then sit in your personal account offsetting against your mortgage. Again they had to be declared as BIK and obviously had to be paid back at some stage.

As I say though, this was all years ago, and rules may have been changed - tightened since then.

minimike2

Natwest will allow you to do this as long as you are a sole trader or a simple partnership. - no limited companies.

If you were to do this then you should seek tax advice from an accountant first.