If you need to take out a loan on a property, you may wish to consider an offset mortgage deal, as your savings can be used to reduce the amount of interest you pay overall during the term of your mortgage.
Using this agreement, customers can pay less interest and tax in the right circumstances, and may also be able to make considerable overpayments that could save them a great deal of money before the end of their agreed term. If you are a high rate taxpayer, this type of interest rate mortgage deal could be beneficial in a variety of ways:
- You could save money by using the savings you already have.
- There may be a number of flexible features, including overpayments, underpayments and optional payment holidays.
- If you rely on commission and bonuses for income, you may be able to make lump sum payments to reduce your mortgage.
It is important to consider a variety of mortgage deals before agreeing to a lender’s proposal. Take a look at our mortgage comparison tables to see which offset mortgage is best for you: