Offset Mortgages
Offset mortgages are gaining in popularity, but what are they? Who are they perfect for and What do they do?
Offset mortgages were first introduced in the 90s from Australia and allowed borrowers to use any money they had in current accounts to reduce their total payment. Any money you have in your current or savings account can be offset against your borrowings reducing your payments and allowing you an extra degree of flexibility in making larger or smaller payments depending on your circumstances.
They are not however perfect for everyone as they may have higher rates and rely on you having money in your current account.
Offset mortgages have become really competitive with the rise in borrowing rates and are now offered by most mortgage lenders. There has been a 49% increase in these types of mortgage in the last year according to lenders.