Is an offset mortgage right for you?
Offset mortgages can be a stunning way to arrange your finances if you have savings that aren’t working well for you right now. It offers a tangible benefit that you’ll feel for the rest of your life as your mortgage comes to an end well before the date you originally planned with a normal mortgage.
In real terms, simple savings are falling in value right now thanks to the combined issues of inflation and low interest rates. So alternatives like offset mortgage rates are winning legions of fans throughout the country.
Be careful though if you already have your savings invested in ISAs or other financial vehicles that are giving you good returns then the sums become more complex. In that case, in fact in any case, you should seek expert and tailored financial advice to decide what the best solution is for you.
Offset mortgages can also be a great way for a contractor or self-employed person with substantial earnings to make the most of their money, while saving for a tax bill. Effectively the money is reducing the interest owed on the mortgage while it is building up in preparation for the annual tax bill.
Most offset mortgages require a deposit of 25%, so bear that in mind, but in a lot of cases you can also link your current account, as well as your savings. So you can make significant inroads into your mortgage costs if you have a large amount of positive cash flow.
An offset mortgage is just one way to arrange your finances, but it can certainly be an attractive option if you want to make every penny of your money work harder for you.
So if you’re thinking of taking out an offset mortgage, take a look at our mortgage comparison tables and we can help you see through the fog and settle on a course of action that works for you.