9:23 AM, 30th December 2021, About 5 months ago 18
Hi all, Do you remember offset mortgages and in particular if they are still available on Buy to Let property?
Has anyone taken one out recently, and how does it work for them? Was it worth the potential increased cost for a specialist product?
Any feedback and advice would be gratefully received.
Editor Note: From the Family Building Society >> https://www.familybuildingsociety.co.uk/mortgages/buy-to-let-mortgages/how-buy-to-let-offset-works
“When you take out an Offset mortgage, a savings account is set up and attached to the mortgage arrangement.
Any money placed in the savings account is automatically deducted from the amount of the mortgage on which interest is charged, thereby reducing the amount of interest that you’ll pay, or reducing your mortgage term and allowing you to pay off your mortgage faster. You won’t earn any interest on the savings when they are linked to the mortgage.
With a Buy to Let Offset mortgage, other things being equal, this increases your net profit from letting (the tax charged on this higher figure will be more as a result) and the offsetting increases the overall cashflow you’ll receive from letting. This may be important if you’re relying on this as part of your retirement income, for example.
Our Buy to Let Offset mortgages are only available to UK resident individuals for purchase or remortgage and not Limited Companies, corporate bodies or partnerships.”
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