is offset mortgage the best idea for us contractors? where do we best get this? thanks
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can I get an offset mortgage?
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First direct probably have about the best offset offering at the momnet. Though you'll need a 25% deposit and they are not very quick. Whether it's best for your circumstances would depend on what you want and what they are, but for my circumstances buying a new property they were best. But my god they are so slow..... -
I have an offset, it suits me perfectly well, no interest on my savings/warchest, but also no tax paid on the savings from mortgage interest benefit due to the offset capital.
Mines from the Clydesdale Bank group.Comment
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These are offset on personal accounts (on the mortgage) I presume?
Any extra accounting hints for contractors?Comment
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I'm with Woolwich (Barclays), and got it via Contractor Money.
Some banks are reigning in, e.g. a couple, including Woolwich said no way to me when I asked directly, but Contractor Money got me in with no problems.Comment
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Originally posted by Flopsy View PostThese are offset on personal accounts (on the mortgage) I presume?
Any extra accounting hints for contractors?
Personally I like to keep me and my company financially at arms length.
Speak to your accountant.Comment
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Check out Yorkshire and Clydesdale Banks.
They do a very good rapid repay flexi mortgage which is effectively an offset. No messing about with different 'pots' either!
Took one out about 5 years ago when I got pissed off paying £450 a month on a 60k mortgage to the B&B.
Chucked all our saving and extra cash into it and now, have no repayments to make and have a draw down allowance on tap up to 100k without any further need to ask bank manager \ building society manager etc.
Best thing I ever did!I couldn't give two fornicators! Yes, really!Comment
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Originally posted by BolshieBastard View PostCheck out Yorkshire and Clydesdale Banks.
They do a very good rapid repay flexi mortgage which is effectively an offset. No messing about with different 'pots' either!
Took one out about 5 years ago when I got pissed off paying £450 a month on a 60k mortgage to the B&B.
Chucked all our saving and extra cash into it and now, have no repayments to make and have a draw down allowance on tap up to 100k without any further need to ask bank manager \ building society manager etc.
Best thing I ever did!
However, if I was still actively contracting then I might look at the so called busisess offset. It appears that this **might** enable one to remove some of the potential BIK issues arising from offsetting business funds agains a personal mortgage.
Having just been through the mortgage hoops in this environment anything you can actually get seems to be the answer!
Underwriters are very picky indeed. Despite only needing 2 x income and an LTV of < 75% I ended up with only 3 lenders willing to lend at reasonable rates - mainly because I have a mortgage of < 1k on a 650k house that I'm not selling (and for a number of reasons don't want to redeem).Comment
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