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Been with Barclays and you could bend when making a manual payment each month. I’ve moved my mortgage to HSBC now and can’t bend. Any hints/tips on how to earn something off my monthly payments?
I’m not a bender.
How about you switch to an offset mortgage so that you don’t actually pay any interest?
Very interesting – had never heard of an offset mortgage! Looking into it, thanks
To not pay any interest on an offset mortgage you need to have the entirety of the owed capital available…
To not pay any interest on an offset mortgage you need to have the entirety of the owed capital available…
That’s the benefit of a family offset mortgage.
For most people the benefit is using it as a savings account and not pay interest on the portion of capital you have.
Virtually no one will have enough capital to pay the entire thing. If you do, probably much better to have an interest only mortgage and put the capital elsewhere.For most people the benefit is using it as a savings account and not pay interest on the portion of capital you have.
Virtually no one will have enough capital to pay the entire thing. If you do, probably much better to have an interest only mortgage and put the capital elsewhere.Depends if that is tax efficient and you need the cash in the medium term. Remember with an offset you’re effectively getting tax free interest at the rate of the mortagage. Great for a higher tax payer. Probably saved me about 5 years of mortgage payments
Offset saved me thousands whilst I was saving and waiting to build my house. Switched to an interest only later when I was strapped for cash during the build process.
I had an offset mortgage once. I believe fixed rate mortgages are generally lower interest rates than offset mortgages. Plus there are more fixed deals available. With interest rates high now, you could probably earn plenty in a normal savings account.
I had an offset mortgage once. I believe fixed rate mortgages are generally lower interest rates than offset mortgages. Plus there are more fixed deals available. With interest rates high now, you could probably earn plenty in a normal savings account.
Quite possible to get an offset account bolted onto a fixed deal.
An offset is not money earned – no tax liability: so 40% or 45% (or more!) better return than a savings account with the same rate.For the OP: don’t know if this describes you but … Offsets are extremely useful for the self employed, who will often have money sitting round for a few months waiting for their tax liabilities every Jan/July. As you can’t (sensibly) take capital risk with something that must be there in full to cover a tax bill in a few months time, the tax-free return at the same level as your mortgage rate is as good as it will get, risk-free.
They’re also very useful for those that choose to overpay in order to pay off their mortgage early – far better to just pay into the offset rather than overpay the mortgage itself, as you retain flexibility: you effectively have a instant access credit facility (i.e. you can just take the money back out of the offset) always available to the value of your total overpayment, should a business opportunity, or anything else important that requires quick access to funds, suddenly come your way.I am with Barclays, and did not know that you could make payments using bendy… That is interesting! Are you talking about making overpayments, or a payment in place of the regular monthly DD? I have a slightly terrifying amount of mortgage debt at the moment, and earning some points back would soften the blow a bit!
I had an offset mortgage once. I believe fixed rate mortgages are generally lower interest rates than offset mortgages. Plus there are more fixed deals available. With interest rates high now, you could probably earn plenty in a normal savings account.
Quite possible to get an offset account bolted onto a fixed deal.
An offset is not money earned – no tax liability: so 40% or 45% (or more!) better return than a savings account with the same rate.You know most people are not on those tax brackets right?
I had an offset mortgage once. I believe fixed rate mortgages are generally lower interest rates than offset mortgages. Plus there are more fixed deals available. With interest rates high now, you could probably earn plenty in a normal savings account.
Quite possible to get an offset account bolted onto a fixed deal.
An offset is not money earned – no tax liability: so 40% or 45% (or more!) better return than a savings account with the same rate.You know most people are not on those tax brackets right?
I wasn’t on 40% tax when I had my offset but mortgage rates were well in excess of 7% at the time so it worked really well for me. Savings interest was taxed at source at the time, so this way, no tax and no 7% interest for every £ I could squirrel away in the offset account.
The numbers still work for a lot of people, but they’re just not marketed as much as normal repayment/interest only because the banks/building societies don’t make as much money from them.
It’s the sensible choice if you are saving for something in the future, maybe another property etc like I was and will need the cash later. Or if you’re cash rich, neeed a safe place to stash without locking it into a property or into the wildly swinging stockmarket
I had an offset mortgage once. I believe fixed rate mortgages are generally lower interest rates than offset mortgages. Plus there are more fixed deals available. With interest rates high now, you could probably earn plenty in a normal savings account.
Quite possible to get an offset account bolted onto a fixed deal.
An offset is not money earned – no tax liability: so 40% or 45% (or more!) better return than a savings account with the same rate.You know most people are not on those tax brackets right?
This is HfP. Here, I work on the assumption that they are 😀 😀
If HSBC mortgages are the same as First Direct there is absolutely no way on this earth you are paying it by anything other than a direct payment from a bank account in your name. Barclays do seem to be more open to alternative payment methods …
I had an offset mortgage once. I believe fixed rate mortgages are generally lower interest rates than offset mortgages. Plus there are more fixed deals available. With interest rates high now, you could probably earn plenty in a normal savings account.
Quite possible to get an offset account bolted onto a fixed deal.
An offset is not money earned – no tax liability: so 40% or 45% (or more!) better return than a savings account with the same rate.You know most people are not on those tax brackets right?
It can be surprising who is…
My niece is a Band 5 nurse (lowest grade of Nurse) in Glasgow, she works full time nights Monday to Friday and has 5 years service.
Her basic salary is £35,365
The Nightshift uplift is 1.3, that brings her salary to £46K.Higher rate tax (41%) starts at £43,663 in Scotland.
But the managers and politicians wonder why they can’t get people to work extra nights when the Nurses know that the Scottish Government will snatch back 50% of their overtime in Tax and NI…
And do the nurses who don’t want to pay higher rate tax ever wonder how the Scottish Government is going to fund their 19% pay demand?
I am with Barclays, and did not know that you could make payments using bendy… That is interesting! Are you talking about making overpayments, or a payment in place of the regular monthly DD? I have a slightly terrifying amount of mortgage debt at the moment, and earning some points back would soften the blow a bit!
Overpayment of 3x your monthly can be done only with bank transfer from Barclays account (or maybe just ACC in your name), so I guess you must cancel your DD and do monthly payments. Fronted?
Does that mean overpayments totalling less than 3 times usual monthly DD (each calendar year?) can be made by credit card?
Your niece should be practising salary sacrifice into her pension fund. If she can put 2.4K pa into it. That then brings her back under the higher tax band. Have just been working with son in law, and daughter on this issue. She will actually have more income that way. Unreal.
A no brainier.
@Scott
Nurses deserve every penny of their 10% pay rise. Really hope they get it nationwide. It’s a really grotty job. Nobody goes into nursing for pay, but they deserve some reward for doing a job nobody outside nursing can even think about. Think about the basic needs of a very sick relative, for starters.100% agree with Polly regarding nursing. I feel it’s a job that’s very under-appreciated and definitely underpaid
Think outside of the box. You can top up an account that does take credit cards then bank transfer in to HSBC, points still earned.
@urabnite is there bank account that takes credit card deposits? None that I know
@urabnite is there bank account that takes credit card deposits? None that I know
Revolut was an example of one, maybe look for similar that suits your needs.
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