Early Mortgage Repayment
Everybody would like to be able to pay of their mortgage early. With an offset mortgage this is a good way to be able to pay off your mortgage debt quicker and therefore pay less interest.
If you are a homeowner with savings, you could be better of with an offset mortgage. Your savings in a current account or savings account can be offset against your mortgage debt. With the amount of your savings offset against your mortgage you could save thousands of pounds and pay off your mortgage much quicker.
The interest is only paid on the balance between your mortgage and your combined savings. The more savings you have the better, but if you need the money from your savings accounts it can still be withdrawn.
The offset mortgage homeowner generally pays a regular monthly repayment, much like standard repayment mortgages. However as the combined savings are offset against the mortgage debt, the homeowner is reducing the amount of interest and therefore overpaying, which in turn will reduce the term of the mortgage.