From:  GI Joe 
Newsgroups: uk.finance
Subject: Offset a loan against a mortgage?
Date: Fri, 07 Sep 2007 04:55:00 -0700
   posting-account=ps2QrAMAAAA6_jCuRt2JEIpn5Otqf_w0
Bytes: 1798

Greetings all,

I've just applied for a loan (=A35000 over 24 months) to buy a used car,
and been accepted, with a rate of 6.3%. I was given a payback rate of
=A3221.97 per month over the 24 months, which gives total payback of
=A35327.28. I had assumed that the 6.3% was per annum, but obviously
this is not the case, as =A35000 * 1.063 =3D =A35315. So the 6.3% is
(approximately) the interest applied over 2 years.

This got me thinking - my offset mortgage is currently 6.2%. Surely I
would do well to take out a loan at 6.3% over 2 years and offset it
against the mortgage, where it would earn almost twice as much
interest over those two years?

Or (as I suspect) am I missing something??

Tom