Consider an offset mortgage if you want to reduce your mortgage term.

Now is a great time to consider an offset mortgage if you have savings. Currently savers are not benefiting much from their spare cash as savings rates are set so low.

With an offset deal you can clear your mortgage early and get a better return on your savings. At present interest on savings is set low, and by paying your spare cash into an offset mortgage account you could be getting a far larger benefit.

Offsets are a product that benefit mortgage holders with a savings pot.

How does an offset work?

An offset deducts the value of any savings linked to your mortgage, and monthly mortgage interest is only calculated once the deduction has been made. By calculating the monthly repayment due after saving have been taken into account, an offset mortgage makes your mortgage payments lower.

For example:

With a £150,000 mortgage advance and £30,000 in savings, you only pay interest on the difference which is £120,000.

You can either reduce your monthly mortgage outgoing by arranging to pay this lower amount, or you can keep paying the interest on the entire £150,000 advance enabling you to get mortgage free ahead of schedule.

With savings rates currently set significantly lower than offset mortgage rates, choosing an offset deal is of great benefit.

If you would like to find out more about the benefits of an offset speak to an impartial adviser at independent 'whole of market' Deal Direct.

We are an independent broker not affiliated to any particular UK lenders, which means our advice isn't limited either.

We only recommend mortgage products that are in our clients best interest. We will search the entire market on your behalf, to find you the very best mortgage on offer to suit your financial circumstances and deposit level.

Call Deal Direct on 0800 048 8828.

We can find you a tailor made mortgage to suit your needs.