Money in linked account(s) is set against the mortgage balance and interest is only charged on the outstanding amount, meaning interest payments are lowered or alternatively, depending on the lender, the term of your mortgage could be reduced.
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How they work
The principle is simple: by depositing your savings or having your everyday current account with the lender the balances in these accounts can be used to reduce the overall interest paid on the mortgage, whilst keeping the money accessible. Many offset lenders calculate interest daily, meaning every day your savings are reducing the cost of your borrowing. Additionally, by utilising your savings to offset your mortgage interest you avoid paying tax on interest that savings deposits would normally attract.
Flexible deals in many cases allow you to make extra lump sum or monthly payments, borrow back money, take payment holidays and make underpayments.
Will You Benefit From An Offset Mortgage?
Offset & Flexible mortgages suit certain type of clients but they can often have slightly higher interest rates or fees so it is essential to compare the scheme against a mainstream product to ensure the benefits and savings really do work for you.
With more and more lenders operating in the offset and flexible market, all offering different features on their products in competition with the each other it is crucial that a comprehensive comparison is made. With instant access to a whole of market panel of lenders we can compare products at the touch of a button thereby ensuring that you are getting the most suitable advice and the correct deal to suit your individual circumstances.
Our quotations and illustrations are completely free so you have nothing to lose and much to gain by contacting us to find out what we have to offer.
For expert advice in Offset Mortgages contact Sophie on email@example.com or feel free to call 01480 223678
Each member of the team that I have had contact with have been very friendly and helpful. Damian Richards especially, instantly put me at ease and has answered any questions, keeping me up to date at all times. Likewise Karen has been very helpful with updates. I will most certainly recommend your company. (07/11/14)
Sonia Murray has been extremely efficient, but the main reason I would come back to The Mortgage Broker is Mary Chamberlain. She’s an excellent mortgage broker and her customer care is outstanding. (27/10/14)
Very happy with the service I received, Jodi has been a star and massively helpful. Thanks. (17/11/14)
Service from the team at The Mortgage Broker is outstanding. This is the 3rd time I have used you to arrange my mortgage and I will continue to do so and regularly recommend you to my friends and colleagues. My expectations are surpassed every time. Thank you. (10/11/14)
We have found that Nadine had provided fantastic service. She has always been prompt with updates and always comes across as happy to help. This and several other factors have helped and reassure us as first time buyers from day one. We would recommend The Mortgage Broker to our friends. (13/11/14)