So, if for example the borrower has a mortgage of £260,000 and a linked savings account with £80,000 in it. They will only be charged for £180,000 worth of interest, allowing them to save a significant amount on their repayments.
There are also several other useful benefits afforded to customers who use a 4 year offset mortgage. For the duration of the agreement, although the customer will not earn any interest on their savings, this money will be exempt from income tax. This makes this type of mortgage an attractive prospect for tax payers who may subject to a particularly high rate.
For all their positives, it is worth remembering that many offset mortgages may come with slightly higher interest rates compared to other types of mortgage deal. So it therefore may be worth carefully considering the rates for a particular offer in relation to the amount of money that customers have saved up.
If you are searching for a suitable 4 year offset mortgage, you may wish to see our mortgage comparisons table for more information on the various mortgage deals that are available.