Can an offset mortgage help us reduce the term of our mortgage?

Posted on 26 February 2008

Katie,

I'm considering an offset mortgage with a term of 14 years and a sum of £73,500.  My wife and I have savings of £25,000. We earn bonuses which give us lump sums to reduce the debt further, approximately every 6 months (£1,000 to £1,500). We would like to reduce the term of our mortgage with a view to paying it off asap. Is an offset mortgage the way to go?

Hi Steve,

Yes, you certainly have sufficient savings to make offsetting worth your while. It's a great way to manage your money.  Make sure you know the difference between gross offsetting and net offsetting. Scottish Widows, Intelligent Finance, Accord and Abbey have the best ones for fixed or tracker at the moment, and also have a look at the One accounts from Royal Bank of Scotland.

Category: Offset mortgages

 

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