Maximising Offset Mortgages. Non comedy version.

**Old Greg** · 28 March 2014, 15:44

Originally posted by northernladuk View Post

Anyone tried working their offset hard or know of any websites that go through all the tricks available. I had a quick search and I can only find the general benefits. I thought there would be something about really working it. Things like...

Balance transfers to credit card so delay payments coming out of offset account. Nationwide .75% offering for example.
Using 0% on purchase long term deals. Problem is you hit your credit limit before you make any good use of this? Maybe combined with balance transfer above could be worth it?
Balance transfers to current accounts (cash transfer) as pointed out by NWP2C recently but rates not amazing.

And particularly for contractors maximising directors loans to 10k as well as using the loan facility and paying the 4% interest which works out a lot lower if you are looking at true cost.

and so on....

Anyone up to speed with all the options or knows a site that discusses this? MSE seem to be very general posts about it, nothing in enough detail to make it worth reading.

MSE is probably the place. ISTR there was a way of transfering credit card debt that is not really credit card debt onto a new card and stashing the money onto the offset.

**d000hg** · 28 March 2014, 16:14

Since it's a bit specialist, THIS is probably the place if you're going to cover company loans, etc. As far as using CCs, etc, MSE has the information and a smart fellow like you probably doesn't need someone to crunch the numbers. Worth looking into but not going to save a fortune for most people was my summary

**Old Greg** · 28 March 2014, 16:20

Originally posted by d000hg View Post

Since it's a bit specialist, THIS is probably the place if you're going to cover company loans, etc. As far as using CCs, etc, MSE has the information and a smart fellow like you probably doesn't need someone to crunch the numbers. Worth looking into but not going to save a fortune for most people was my summary

You are very bad.

**northernladuk** · 28 March 2014, 16:36

Originally posted by d000hg View Post

Since it's a bit specialist, THIS is probably the place if you're going to cover company loans, etc. As far as using CCs, etc, MSE has the information and a smart fellow like you probably doesn't need someone to crunch the numbers. Worth looking into but not going to save a fortune for most people was my summary

Just wondered if there were any other methods people used that I might have missed. I can't see the 0% on payments working as I would hit the credit limit every few months. Even using the balance transfer options it won't be a fortune as they only offered me 5.7k credit. Still, this on top of everything else should mount up nicely.

**TheFaQQer** · 28 March 2014, 16:38

Originally posted by northernladuk View Post

Just wondered if there were any other methods people used that I might have missed. I can't see the 0% on payments working as I would hit the credit limit every few months. Even using the balance transfer options it won't be a fortune as they only offered me 5.7k credit. Still, this on top of everything else should mount up nicely.

If you're going to do that, make sure you keep track of the exact date that the interest starts and pay by then. The one time I did it, I naively waited for the statement to arrive, got hit with interest charges, and wiped out any saving I'd had over the 0% period.

**d000hg** · 28 March 2014, 16:42

Originally posted by northernladuk View Post

Just wondered if there were any other methods people used that I might have missed. I can't see the 0% on payments working as I would hit the credit limit every few months.

What do you mean exactly? I thought you were talking about getting a money transfer CC which charges 4% fee for 29 months years interest free, for say £6k, dumping this in the offset for 28 months and then pulling it out to pay off the CC (or transferring the CC debt to another 0% deal).

**northernladuk** · 28 March 2014, 16:47

Originally posted by d000hg View Post

What do you mean exactly? I thought you were talking about getting a money transfer CC which charges 4% fee for 29 months years interest free, for say £6k, dumping this in the offset for 28 months and then pulling it out to pay off the CC (or transferring the CC debt to another 0% deal).

Well not really. I was thinking of the Nationwide balance transfer at 0.75% but only to another credit card. Dump it all in the existing credit card which means the money that would normally have come out of the offset account to pay the card doesn't. Effectively keeping the money I offset to the credit card in the offset account... if that makes sense. The offset mortgage is only 4% so wasn't really worth doing the money transfer. The abysmal credit amounts they offer the are the problem though.

**northernladuk** · 28 March 2014, 16:49

Originally posted by TheFaQQer View Post

If you're going to do that, make sure you keep track of the exact date that the interest starts and pay by then. The one time I did it, I naively waited for the statement to arrive, got hit with interest charges, and wiped out any saving I'd had over the 0% period.

Yep. Been stoozing cards since they days of 0% with no charges and 15k+ interest rates. I have the dates logged on the family planner and my own calendar so everything starts pinging me well before any dates run out. In some cases I will set up a full payment with a future pay date to automatically pay just before the rate ends as well.

**ContrataxLtd** · 28 March 2014, 16:54

I assume you are doing the whole declare the years tax efficient dividend out in April to stash in offset and drawn down on each month from there? Obviously the usual criteria applies, must have profit, be sensible with your cash etc.

Martin
Contratax Ltd

Maximising Offset Mortgages. Non comedy version.