Offset Mortgage

Would you like to get more out of your savings? Especially in the current climate, the interest that you will earn in a savings account is likely to be lower than the interest that you pay on a home loan. An offset mortgage works by actually reducing the balance of your mortgage by taking your savings into consideration. As an example, savings of £15,000 would mean that you would only accrue interest on £85,000 of a £100,000 mortgage. In addition, you will enjoy more favourable rates on tax for using your savings in this way.

The interest that you will accrue by using a high-street savings account has significantly decreased in the economic downturn. Therefore, an offset mortgages offers an alternative whereby you can actually be rewarded for being disciplined with your money and cancel out some of your mortgage debt at the same time. If you would like to find out whether an offset mortgage is right for you, simply fill out the short form and a qualified mortgage advisor from the SimplyFinance network will be in touch with you shortly to talk through your options with you.

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Some Offset Mortgage Basics

• Offset mortgages are suited to those with a significant amount of money available to put into a savings account.
• You will not make payments to your mortgage lender. Instead, you will make payments into your savings account. The interest earned by the money in the savings account will go toward paying the interest of your mortgage loan.
• The aim of an offset mortgage is that there will be enough money in the savings account at the end of the mortgage term to repay the outstanding principal balance of the loan.