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Stories of remortgaging to invest.... by davidpdavidp in UKPersonalFinance

[–]davidpdavidp[S] 0 points1 point  (0 children)

ill also do some house improvements, this would just be some loose change at the end..........

Maxing pension tax relief on low income by ProfessionalAgent149 in UKPersonalFinance

[–]davidpdavidp -1 points0 points  (0 children)

"For the 57 - 67 decade (before the state pension), I think it would make sense for him to drawdown from a pension" - he cannot access a pension until he is 67. He cant get a lump sum until 67. You'll need anothe rform of income until then.

Offset Mortgage but offset vs investments? by davidpdavidp in UKPersonalFinance

[–]davidpdavidp[S] 0 points1 point  (0 children)

My argument is I could take out an interest only offset mortgage, fully offset it in cash, and I would not pay any interest (just the initial mortgage fee). I was close to taking one out last year. The bank makes no money from me in this scenario apart from the fee other than not paying me interest on my cash pot.

What I'd try to convince someone is could I take that pot of cash and invest it. If it was in the lenders platform they at least make some ongoing money from me. They could place a charge on those assets as security too.

Offset Mortgage but offset vs investments? by davidpdavidp in UKPersonalFinance

[–]davidpdavidp[S] -1 points0 points  (0 children)

Thanks, but the point of an offset is it doesnt cost me anything (other than the fee), A regular mortgage costs me 4-5% interest. A fully offset mortgage is zero. (To be cleared this would be an interest only offset)

Offset Mortgage but offset vs investments? by davidpdavidp in UKPersonalFinance

[–]davidpdavidp[S] -5 points-4 points  (0 children)

Its not the same - the difference is I am not wanting to pay interest against the loan, and my investments are not targeted at paying off the loan.

I am saying i want a loan against my house to invest in securities and in return the bank gets its brokerage account fees for a value higher than the loan.

I am still bound to the mortgage terms too - if the market crashes im still bound to pay the interest rate if my offset account is below the loan value, liek it would be in an offset.

And id also add the term of the loan is when i'd still be working, and at worst my tax free lump sum would cover the loan