Offset mortgage deals are an option for those with savings.

An offset mortgage could be one answer to rising costs and falling savings rates for cash rich home-owners.

The eurozone crisis continues with no sign of resolution and both mortgage-holders and savers are suffering.

Home-owners are concerned about rising mortgage costs due to wholesale funding drying up, and savers are frustrated about the poor returns offered by UK banks.

For cash rich home-owners there is an answer – an offset mortgage which could give a better return on savings and reduce mortgage costs, while still allowing access to the savings.

Offsets are also a tax efficient product for higher rate taxpayers meaning that you effectively pay your mortgage interest from untaxed gross saving deposit interest.

Offset mortgages tend not to be marketed as well as other lenders mortgage products which means that they are not as popular as they could be.

Remortgaging to an offset could be of great advantage to home-owners whose SVR was increased last month.

With an offset mortgage you only pay interest on the difference between the amount of savings deposited and your outstanding mortgage. So with a £250,000 mortgage and £30,000 on deposit you pay interest on £220,000.

Contact Deal Direct and we can take you through the benefits of an offset mortgage, we can help you work out whether this type of mortgage is right for you.

With flexible mortgages now becoming difficult to achieve an offset is a good alternative. A lifetime tracker offset mortgage is on offer from first direct at 3.09% plus base for 65% LTV with a £499 fee.

For comparison of this best buy offset mortgage against the rest of the market contact Deal Direct today.