Please forgive me that this is a repost of something I put in the US dominated forums. I got minimal response and I think its because offset mortgages are not a thing in USA
hi,
I have a fully funded offset mortgage in the UK (meaning I owe 200, 000 dollars but have an account containing 200,000 dollars where the savings interest forgone offsets the mortgage interest).
I am wondering whether I should be using it as a tool in my FIRE plans.
I am recently FIRE and intend to use proceeds from selling other home to fund a 3 year CD ladder with 3 years of expenses to reduce Sequence of Return Risks.
The rest of my stash is 80:20 stocks to bonds. Or will be with home proceeds
Should I have a strategy for dipping into the mortgage offset account? How and when should I do this? Is this already mitigating SORR ? I have not given it much thought but as I am now recently FIRE and about to get the proceeds from selling USA home, move to UK and set up the pipeline that funds my expenses I wanted to ask. I wonder if I am missing a trick or even something obvious?. The mortgage offset account is a variable interest rate currently around 4%. Should I forget about having a 3 year CD ladder and just dip into my offset for a couple of years in an extreme bear market?
Any advice from the wise crowd?