Nicholas Mendes
12 September 2024
We explain what an offset mortgage is and the main features and advantages. Compare the best offset mortgage rates using our best buy table.
00:03 – How Does an Offset Mortgage Work?
00:24 – What Are the Benefits?
For a more in-depth discussion about whether this could be the right mortgage for you get in touch with us today.
How does an offset mortgage work?
You put savings into an offset mortgage linked savings account to offset the balance that the interest is charged on. For example if you have a mortgage of two hundred thousand pounds and savings of twenty thousand, the net balance which interest is payable on is one hundred and eighty thousand pounds.
What are the benefits?
Generally, you can add money into the account or take money out when you want. They can be very flexible and efficient. Interest rates on offset mortgages are often higher than interest rates offered on savings accounts. With this and the flexibility of offset mortgages, you could be better off overall. If you use an offset mortgage, some lenders could offer you either reduced monthly repayments or a reduced mortgage term.
Find out more today.
