Reply to: Maximising offset mortgages

[NickNick]

Their literature is confusing and a bit misleading. They're referring to sole traders. But I do seem to remember that you can use up to £5,000 as a directors loan. Need an accountant to confirm this though.

Yep, they are referring to sole traders, but they talk about Ltd Companies. Either way, doesn't apply to me. I am applying for a mortgage with them at the moment and these new regulations seem to add a lot to the time taken.

[DaveB]

That wasn't really the question though. The question was can you link a Limited Company bank account to the Offset mortgage and the answer is categorically, no.

What you're implying is that it is possible to take a Director's Loan out and pay that into your personal account which would then be offset to the mortgage, which, yes (so long as T&C's are abided by - check with your Accountant) is possible I believe, but the that wasn't the question.

You can do it with a directors loan but the benefit is limited by the time restrictions. You have to pay the loan back within 9 months of company year end or pay tax on it and HMRC take a dim view of repaying the loan on a Friday and taking a new one on Monday and will treat it as income.

EM8565 - Close Companies: CTA10/Section 455 (Loans to Participators): Bed and Breakfasting

[Power Mortgages Ltd]

I'm not 100% sure, maybe an accountant can confirm this but I believe your entitled to use up to £5,000.00 (Directors loan).

That wasn't really the question though. The question was can you link a Limited Company bank account to the Offset mortgage and the answer is categorically, no.

What you're implying is that it is possible to take a Director's Loan out and pay that into your personal account which would then be offset to the mortgage, which, yes (so long as T&C's are abided by - check with your Accountant) is possible I believe, but the that wasn't the question.

[Freelancer Financials]

IIRC it's 10k from this year without BIK. Terms and conditions apply.

Cheers for confirming.

[Freelancer Financials]

You're

Thanks!!!

[speling bee]

I'm not 100% sure, maybe an accountant can confirm this but I believe your entitled to use up to £5,000.00 (Directors loan).

IIRC it's 10k from this year without BIK. Terms and conditions apply.

[speling bee]

Your absolutely right, it doesn't apply if you run a Limited Company. Their literature is confusing and a bit misleading. They're referring to sole traders.

You're

[Freelancer Financials]

Correct, this is not available to Ltd Co accounts which are a separate entity. More aimed at Partnerships and sole traders as I understand. The question has been posed to me many times before but sadly you cannot link Ltd Co accounts to the offset

I'm not 100% sure, maybe an accountant can confirm this but I believe your entitled to use up to £5,000.00 (Directors loan).

[Freelancer Financials]

Just been looking today and the Clydesdale offer an offset mortgage, offset against the business accounts.
"Save on interest payments by linking your Clydesdale Bank current, savings or business accounts to your mortgage, and enjoy a discount on your interest rate for the first two years of your mortgage"

Before I call em up, has anyone used them for this? I would bet that it doesn't apply to the kind of ltd that I (and many others here) run, but you never know.

Their literature is confusing and a bit misleading. They're referring to sole traders. But I do seem to remember that you can use up to £5,000 as a directors loan. Need an accountant to confirm this though.

[Pondlife]

Then I'd be Speling Bee Consulting Limited Ltd.

Better go with Speling Bee Consulting Limited Ltd. formally trading as ... to be safe. Or you could wait a couple of weeks.

[NickNick]

I've not read their terms but I'm pretty sure that when it says business, it means unincorporated business. Remember that your limited company is a separate entity to you as an individual.

Yep, I understand that the business and me are separate entities, but as I couldn't get through to them yesterday I thought i'd ask here. As always, if it seems to good to be true...

Thanks though

[speling bee]

I wonder how Mr Yorkshire Bank Plc are Fascist Bastards is doing these days...

He's my favourite.

[speling bee]

Lots of people are their name Ltd.

Then I'd be Speling Bee Consulting Limited Ltd.

[mudskipper]

I'm changing my name by deed poll to "Speling Bee Consulting Limited".

Lots of people are their name Ltd.

[TheFaQQer]

I'm changing my name by deed poll to "Speling Bee Consulting Limited".

I wonder how Mr Yorkshire Bank Plc are Fascist Bastards is doing these days...