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Villager Senior
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Posts: 4,415
Join Date: Jan 2005
Location: London, , United Kingdom
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24-09-07, 08:53 PM
Quote:
Originally Posted by Incognito
Le Moor - i had a similar setup. I would pull out as much equity as I could so I had ready cash anytime I needed it but would leave it in the account so it was offset against what my actual mortgage was. Basically my mortgage was only costing me what I spent...and had emergency money at the ready....£60k at one point.
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Good idea.
You know there are some Offset mtgs that have whats known as a reserve facility, which could of have provided the 60k you needed without the need to re-mtg the way you did. When you originally went for the mtg you could of applied for this reserve facility upto the maxuim your Lender was prepared to give you. For example, if you originally borrowed £100,000 but your earnings allowed you to have £150,000, you would then borrow the £100,000 and have £50,000 put on reserve. In other words its already agreed and its there if you need it. Much the same as you did before. The difference is, this way you've done the same thing within one transaction. The way you did it was within two, hence two lots of set up fees.
Its only a better way of doing it mind you, if the reserve can be drawn down at the same rate as the mtg, otherwise the way you did it, may have been the better option.
Last edited by Le Moor; 04-04-08 at 07:20 AM.
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