Offset mortgage products can make more of savings.

As interest rates for savings accounts get worse, offset mortgage products could offer advantages. Call Deal Direct for more information on interest rates and the benefits of this type of mortgage.

If you are getting very little interest from savings accounts, changing to an offset mortgage could make better use of your money. You could potentially save substantial amounts of money over the lifetime of your mortgage, or even reduce the length of your mortgage.

A number of lenders offer offset mortgage facilities at just a couple of percentage points above the mortgage rates they usually offer. With low rate fixed or tracker mortgages you could still benefit from low rates and make your savings work for you.

Your savings would be deposited in an account that is linked to your mortgage account. Each month you pay interest on the balance between your mortgage loan and your deposited savings. This means that you benefit from lower monthly payments but still have access to your savings if you need to withdraw them.

There is an added advantage that you would not pay tax on your savings because you do not actually receive interest. However, you would save the interest that you would otherwise pay on your mortgage. Effectively the rate you receive is the same as your mortgage rate.

Recent figures suggest that less than 10% of home buyers consider offset mortgage products. The main reasons are thought to be the perception that products are complicated and only suitable if you are very wealthy. However, if you have savings these products are worth considering.

Call Deal Direct today for advice.