Offset account kept in credit.

[Teddy Lop]

Can I open an offset account with a large 'overdraft' but that is kept in credit?

Reason being I've been given a sum that'll settle the mortgage but which may have strings attached and I may have to withdraw some/all of it. Nothing so dodgy as it might sound.... But I want to make the money work, while having it immediately accessible.

[Countdown]

Teddy Lop said:

Can I open an offset account with a large 'overdraft' but that is kept in credit?

Reason being I've been given a sum that'll settle the mortgage but which may have strings attached and I may have to withdraw some/all of it. Nothing so dodgy as it might sound.... But I want to make the money work, while having it immediately accessible.

You can open an account and link it to your mortgage if it has the "offset" facility. (AIUI the offset account needs to be with the same bank as the Mortgage)

I'm not sure why the linked account itself needs to have an "overdraft" facility

[Teddy Lop]

Yes, I envisage an offset account as being just an account with a supermassive overdraft but can appreciate it can be two linked accounts. In which case if I had £x debt sat in one account and a matching £x credit sat in the other you'd pay no interest, the bank would be happy, and I'd have access to funds as required?

[Countdown]

Teddy Lop said:

Yes, I envisage an offset account as being just an account with a supermassive overdraft but can appreciate it can be two linked accounts. In which case if I had £x debt sat in one account and a matching £x credit sat in the other you'd pay no interest, the bank would be happy, and I'd have access to funds as required?

You'd be better off with 2 accounts (1 mortgage linked to 1 savings) rather than a current account with an overdraft. If you took out the cash that you needed the overdraft rates you would pay would be 40% whereas mortgage rates are <5%

[shopper150]

Check carefully and go for the linked account option. There are some accounts that consider the mortgage repaid and remove the 'overdraft/loan# facility as soon as it hits zero.

[Medieval Knievel]

shopper150 said:

Check carefully and go for the linked account option. There are some accounts that consider the mortgage repaid and remove the 'overdraft/loan# facility as soon as it hits zero.

Our Barclays Offset mortgage does this