First active offset morgage and interest relief

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lored

Registered User
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Hi all,

Simple question. I have a lump some lodged in my first active facility account - the amount is the same as the value outstanding on my Mortgage. Because it is an offset mortgage I don't pay any interest.

However I don't recieve any mortgage interest relief. Would I be better off lodging the money to northern rock thus paying interest on my mortgage but receiving interest from northern rock and getting mortgage interest relief.

Any help with this would be appreciated.

Lored.
 
lored said:
Simple question. I have a lump some lodged in my first active facility account - the amount is the same as the value outstanding on my Mortgage. Because it is an offset mortgage I don't pay any interest.
Click to expand...
Do you still have to make monthly repayments in this situation? If you have to make repayments anyway but they simply don't include any interest charge then perhaps it could be advantageous to withdraw as much from the account as it would take to incur interest charges up to your TRS limit, this cost will be cancelled out by the TRS and you can use the money for something else. Of course maybe I'm missing the point here (too?)?
 
Clubman, how do I calculate what "would take to incur interest charges up to your TRS limit"?

Thanks for your reply..
 
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