When searching for offset mortgages, the best buyers often tend to shop around as much as possible. By comparing different deals and offers from lenders using mortgage comparisons, customers are much more likely to find a competitively priced deal on an offset mortgage.
Unlike many other types interest rate deal, an offset mortgage allows customers to use their savings, or even money that may exist in a current account, to offset the cost of their interest on their mortgage repayments.
There are a number of different offset mortgages available to customers, and they can often be very flexible depending on the type of deal that is selected. It is therefore important to analyse the terms and conditions of a proposed agreement before committing to it. If you are searching for the best buy on an offset mortgage, feel free to consult our mortgage comparisons table above.
Generally speaking, offset mortgages are best suited for customers who will be able to commit a significant amount of money to their mortgage on a long term basis.
For example, a borrower who has a mortgage of £176’000, and some savings amounting to £60’000 will able to use this amount to offset the cost of mortgage. Using this agreement, the customer will only be expected to pay interest on £116’000. It is also worth remembering that some providers may also allow customers to link money from several different accounts, allowing them to save even more money on their interest payments.
When searching for the best buy on an offset mortgage, it is important to remember that many of these mortgages may have several differences, and interest rates on your mortgage may dramatically increase if money is withdrawn from these accounts.
Here are some examples of some common conditions that may be included with an offset mortgage:
- Some accounts may allow customers to link different accounts, however some others may not
- Others may have significantly higher interest rates compared to normal mortgage agreements, and are therefore worth watching out for.