can I get an offset mortgage?

[contractor79]

is offset mortgage the best idea for us contractors? where do we best get this? thanks

[ASB]

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.....

[TykeMerc]

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.

[Flopsy]

These are offset on personal accounts (on the mortgage) I presume?

Any extra accounting hints for contractors?

[FarmerPalmer]

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.

[FarmerPalmer]

These are offset on personal accounts (on the mortgage) I presume?

Any extra accounting hints for contractors?

you could use a directors loan account to lend money to yourself and offset.

Personally I like to keep me and my company financially at arms length.

Speak to your accountant.

[BolshieBastard]

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!

[ASB]

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 looked at both those. On an ltv of upto 80% then they are 3.79. Reasonably attractive if you do need 80%. Though I plumped for First Direct who will charge 2.89 on a 75% LTV. Difference is 1350 a year on 150k.

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).