The Offset Mortgage - Why Is It Growing In Popularity?
The biggest innovation in the mortgage market in recent years,
the offset mortgage, is now starting to take a significant share
of the market. Now, only six years after they were introduced,
the offset and the current account mortgage account for 10% of
all borrowed mortgage capital.
According to one of the UK's largest mortgage lenders, as many
as 25% of existing mortgage holders could save money in the long
run by choosing an offset mortgage. If you're one of those
possible 25%, then it's important that you are aware of the
facts.
What exactly is an offset mortgage?
Here's the concept: you borrow capital from the mortgage lender
and you also have savings sat in another account. Instead of
paying interest on your full loan and earning interest on your
savings, you pay interest on the amount you borrowed minus the
amount you have saved. For example, if you had