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DerekD

Offset Mortgage Question

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Does anyone know if this is possible...?

Basically we are looking to buy a place (cash purchase) but it would wipe out our savings completely. As i'm a contract worker, i need to have a bit of a cushion in place just in case i'm out of work for a while in the near future

What i'd like is an offset type of mortgage where we can actually start at zero balance but have an agreement to dip into a negative balance (lets say 20k max limit) for a few years, should the need ever arise. Its only a "just in case" facility. I assume the bank would charge some sort of arrangement fee for this.

But what im trying to avoid is taking out a mortgage straight away & paying the interest on it (given that its something i'll hopefully never need).

There's a lot of knowledge on this site, hence why i came here! Thanks in advance.

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Not quite as you describe, but what I did with my old IF mortgage was keep a large savings buffer that was the equivalent of my actual mortgage balance in an offset savings account. The result was I paid 0% interest, but made a capital repayment each month and could instantly access the full amount of my savings without any paperwork any time I needed it. I had a couple of redundancies over the 10 years I had the mortgage and both times just dipped into the savings pot and paid pretty minimal interest on my mortgage payment for a few months until I'd sorted out another job and then topped it back up to match the mortgage balance.

The bad news is that IF have stopped doing new mortgage, so you'll have to trawl the remaining ones to see what their T&Cs permit.

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Does anyone know if this is possible...?

Basically we are looking to buy a place (cash purchase) but it would wipe out our savings completely. As i'm a contract worker, i need to have a bit of a cushion in place just in case i'm out of work for a while in the near future

What i'd like is an offset type of mortgage where we can actually start at zero balance but have an agreement to dip into a negative balance (lets say 20k max limit) for a few years, should the need ever arise. Its only a "just in case" facility. I assume the bank would charge some sort of arrangement fee for this.

But what im trying to avoid is taking out a mortgage straight away & paying the interest on it (given that its something i'll hopefully never need).

There's a lot of knowledge on this site, hence why i came here! Thanks in advance.

Try Yorkshire Building Society offset fixed rates from 4.09% if you're not bothered about a current account. Basic savings account but there will be a minimum mortgage initially - probably 25K but you won't pay any interest on it if you've got 25k in your savings account.

Edited by LettingsLady

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Try Yorkshire Building Society offset fixed rates from 4.09% if you're not bothered about a current account. Basic savings account but there will be a minimum mortgage initially - probably 25K but you won't pay any interest on it if you've got 25k in your savings account.

Thanks Guys - i'll have a look at Yorkshire

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