Offset Stocks and Shares ISA Mortgage

[Dogbash]

Does such a thing exist?

I want to invest some money into an ISA and it seems stocks and shares gives the best return. I've also noticed I can reduce the interest payments on my mortgage with an off-set mortgage. Can the two be combined so essentially I get the best of both worlds?

Andrew

[BoRED S2upid]

Never heard of such a thing imagine the hassle of offsetting it your S&S isa looses 2% one day gains 0.75% the next which has to offset your mortgage interest it’s never going to happen.

[NickCQ]

The idea of the offset is that the bank has your money so doesn’t have to charge you interest on it. If the savings are invested in the stock market then the bank doesn’t have the money so would need to charge you interest.

Back in the day the hot product was endowment mortgages, where principal repayments would be invested in the stock market instead of reducing the principal balance of the mortgage. Problem was the customers got fleeced for fees along the way and if the stock market crashed around the maturity of your mortgage then you were out on the street. Unsurprisingly this 90’s version of PPI is not offered any more after many of these things blew up spectacularly.