Offset Morgages

[hobo]

Is it possible to offset a mortage against a company bank account (my limited company).

I know that it is normally against savings/current accounts so just wondered.

[chim_girl]

If it is a commercial mortgage then yes you can. Doubt you'd be able to do it againist a residential one though.

[chim_girl]

More details here :- www.bankofscotland.co.uk/corporate/funding-solutions/smartfinance/

[hobo]

Damn.

Was just a thought, although will mention it to accountant to see what he says.

[Eric Mc]

If you use a personal loan (mortgage) to offset against a business asset (bank account) you could raise all sorts of Directors Loan account/Benefit in Kind issues. If the loan is secured against a personal non-business aset (i.e your home) you will also have to disclose such matters in notes to the relevant limited company annual accounts.

[hobo]

Cheers for reply.

Sounds a lot of hassle to me, but then I am a bit stupid.

I will see what accountant says.

[shirepro]

I tried this....no go. Had i stayed as a sole trader, then no problem.

[simpo two]

I considered this when they first came out - then I realised I was tying up my mortgage and savings with the same company.

Oh yes, and then a few weeks later I got a letter from a surveyer saying 'Thank you for instructing us to value your house...'