Offset mortgages explained with mortgage broker, Deal Direct.
Offset mortgages are easily explained by our experts at mortgage broker, Deal Direct.
Offset mortgages could be of interest to you if you have a significant amount of savings. Your savings could be ‘put to work’ by being offset against your mortgage. The advantages are:
- The loan can be paid off much faster than a conventional mortgage.
- You still have access to your savings, should you need them.
Your monthly payments would normally stay at the same level, as they are calculated based on the full amount of the loan. However, the higher repayments, if they are affordable for you, is how the mortgage is paid off more rapidly.
Mortgage rates can be a little higher than other mortgages, however, the amount of savings counterbalances the rate charged.
For example, Accord are currently offering 1.79% for a 3 year fix with a 15% deposit.
Not all lenders offer the same though as some, such as Scottish Widows, offer you the option of either paying off your mortgage quickly or reducing your monthly repayments.
Interest rates remain low for the moment, and are not of benefit to savers as much as they have been in the past. Therefore, exploring the option of an offset mortgage could mean you pay off your mortgage quicker, whilst keeping hold of your lump sum.
For more information, contact our independent mortgage advisers at Deal Direct. We offer highly qualified and unbiased advice so you can be sure of opting for the best mortgage option for you.
Call Deal Direct on 0800 048 8828 today.
