If you have substantial savings that you would like to set to work reducing the amount of interest you pay and the overall cost of your mortgage, some kind of offset mortgage and current account deal may worth serious consideration.
An example of how an offset mortgage deal would work would be: you have a £200,000 mortgage loan and you have £50,000 savings, you will only have to pay interest on the first £150,000 of the mortgage loan.
Offset mortgages are great for people who perhaps have a more irregular income because you can make underpayments in times when your salary is reduced and if you receive bonuses or rely on commission you can make overpayments, which enable you to pay off your mortgage in a shorter time frame than the term established by your lender.
The offset mortgage is flexible precisely because you can make underpayments, overpayments and take holiday payments. In choosing to offset your current account against your mortgage loan you may end up saving a considerable amount of money on your interest payments and mortgage loan.
It is worth taking a look at our comparison tables to find the best offset mortgage deal for you: