Offset mortgage
March 29th, 2008 Filed Under Mortgage comparison
Offset mortgages are still a relatively new product in the UK mortgage market. If you’re very strict and thorough with your finances then an offset mortgage can definitely help you save money in the long run.
The basic idea of an offset mortgage is to combine a savings account with your mortgage account. So if for example you had a £100,000 mortgage and £10,000 in savings, you’d essentially be paying interest on just £90,000.
One thing to be cautious of is increased interest rates, whilst you may be paying interest on a smaller amount - if the rate is higher then it may not work out beneficial so ensure you check this!
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