Directors Loan and Offset Mortgage
Discussion
I've never used a Director's loan account but considering options with a house purchase imminent. Is this possible/legal?
- Get offset mortgage of 500K for new house at, say 5%
- Take director's loan of 500K, placed in to the account linked to the mortgage therefore allowing me to pay no interest on the mortgage while paying off the repayment side as much as possible
If I pay the company 2.25% interest on the loan am I correct that it would not count as a BIK?
Am I correct that I have to repay the 500k loan within 9 months of the end of the company accounting period, but could then wait 30 days and take another one?
I must have the above wrong as on the face of it it seems like a decent option
- Get offset mortgage of 500K for new house at, say 5%
- Take director's loan of 500K, placed in to the account linked to the mortgage therefore allowing me to pay no interest on the mortgage while paying off the repayment side as much as possible
If I pay the company 2.25% interest on the loan am I correct that it would not count as a BIK?
Am I correct that I have to repay the 500k loan within 9 months of the end of the company accounting period, but could then wait 30 days and take another one?
I must have the above wrong as on the face of it it seems like a decent option
Gassing Station | Finance | Top of Page | What's New | My Stuff