With an offset mortgage you can link your savings and current account with your mortgage.
This means that any cash you have in savings can reduce your mortgage interest payments. There are hundreds of offset mortgage deals in the UK, so finding the right one can be a headache. Independent Mortgages Direct NE has access to every lender and mortgage provider in the UK. Our whole of market choice can save you time, money and hassle when trying to arrange a mortgage. And we won’t charge you a penny for our service!
What is an offset mortgage?
Offset mortgages are totally flexible arrangements that tie together your current account, savings and mortgage. All are kept in separate accounts, but when the interest is calculated, each is taken into consideration. This helps reduce interest payments. For example, your mortgage might be £150,000, but you have a savings pot of £20,000. That means that you will only pay interest on £130,000
Is an offset mortgage right for you?
While offset mortgages offer lots of benefits and incentives, they are not the right deal for everyone. Before making your decision, it’s worth considering the following advantages and disadvantages:
- If you have plenty of savings and money in your current account, an offset mortgage can save you lots of interest
- However, you won’t receive any interest on your current account savings (though savings rates are very low at the moment anyway)
- This works to help you pay off your mortgage faster, and save you money
- All of your other debts are consolidated into a single loan (including credits cards, store cards and personal loans), so you can enjoy lower repayment interest rates
- It’s worth remembering that consolidating debts into a mortgage does mean that you will take longer to pay them off
- Unlike a current account mortgage, you can still see your individual accounts
- Offset mortgages are particularly popular with self-employed people, contractors, or people on a bonus scheme
- The extra flexibility means that interest rates are generally higher than other mortgage types
Call us on 0800 0350095 for a FREE consultation with one of our friendly and experienced team. We are happy to discuss your situation and help you choose the best offset mortgage.