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**ancexttew** · 09-01-2012, 02:01 AM

Yes, but instead of offsetting your own money, you take out an £85k mortgage and leave the funds sat in an offsetting account (mortgage therefore attracts no payments as it is interest only). You invest your own £85k but have an £85k cash call at less than 3% pa.

If the bank goes caput, the £85k is protected and they use whatever other deposits (assuming less than £85k) you have to repay the £85k loan. You settle the difference and walk away with what's left, that being whatever was in your other deposits (ignoring any fees).

It essentially amounts to having an £85k low-interest, colateralized overdraft.

09-01-2012, 02:01 AM	#20
ancexttew Join Date Oct 2005 Posts 468 Senior Member	Yes, but instead of offsetting your own money, you take out an £85k mortgage and leave the funds sat in an offsetting account (mortgage therefore attracts no payments as it is interest only). You invest your own £85k but have an £85k cash call at less than 3% pa. If the bank goes caput, the £85k is protected and they use whatever other deposits (assuming less than £85k) you have to repay the £85k loan. You settle the difference and walk away with what's left, that being whatever was in your other deposits (ignoring any fees). It essentially amounts to having an £85k low-interest, colateralized overdraft.
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