What to do with an offset mortgage from a Spanish bank

[Ruprect]

Time to divert some funds from it's subsidiary CA?

[moorfield]

Is that beginning with an "S"?

That's the one. I can't be bothered to copy / paste verbatim but basically it reads "If we think we might go tits up we are going to convert you and that nice fat cash surplus you've given us onto a standard repayment mortgage while you're not looking".

So at base +75bp (slightly less generous than your +49bp) I've decided to take back my nice fat cash surplus and put it to work elsewhere. With 20yrs to go the mortgage is going to be inflated away to nothing anyway.

Feck it, maybe I'll just buy a Porsche and some lines of Coca instead.

[Scrag Meister]

I got round to reading the smallprint of my offset mortgage on my train home.

It's all coming out tomorrow and being shunted into cash, linkers, gold whatever before they change the rules on me.

Is that beginning with an "S"?

Whats changing?, I have my mortgage with them.

And I'm on a very healthy (for the mortgage not savings) .49% above base for term.

[PAH]

I was wondering if it meant that should the bank go tits up then they keep any funds in the offset account by saying it doesn't cover the mortgage value, so a way of losing savings by being forced to pay off a chunk of mortgage at that point.

More succinctly, if the loan outstanding is greater than the funds in the offset account you get nothing back, but still have the remainder of the mortgage to find.

So not a safe heaven for savings, even if it is lowering the cost of borrowing.

[MarillionFan]

What small print in offset mortgages should we be concerned about?

I was wondering about that? I have a Woolwich one.

I assume he means that the bank can invoke a clause to reduce your offset(ie remove funds) if the LTV drops(ie they rerate your property).

I pay .48 over base so went and stuck it all in Isas and bonds in mine and wifes name to
mitigate tax. Money for nothing.

[PAH]

What small print in offset mortgages should we be concerned about?

[Lockhouse]

Hmm one reason why I only use First Direct. I didn't trust anyone apart from HSBC when I looked around in 2006 and nothing has changed my opinion since then.

HSBC+1

[eek]

I got round to reading the smallprint of my offset mortgage on my train home.

It's all coming out tomorrow and being shunted into cash, linkers, gold whatever before they change the rules on me.

Hmm one reason why I only use First Direct. I didn't trust anyone apart from HSBC when I looked around in 2006 and nothing has changed my opinion since then.

[moorfield]

I got round to reading the smallprint of my offset mortgage on my train home.

It's all coming out tomorrow and being shunted into cash, linkers, gold whatever before they change the rules on me.