Before choosing a lifetime offset mortgage, it is also important for customers to decide exactly what type of mortgage repayment plan will be best suited to their needs. The following is brief explanation of each:
Often favoured by customers due to their simplicity, repayment mortgages are gradually paid off during the course of the mortgage, until the borrower has fully paid off their debt.
Using this type of agreement, customers pay off a portion of the loan every month, with interest included on top, until the debt has been fully repaid. The advantage of this type of offset mortgage is that customers are almost always guaranteed to own the property outright once their repayments have finished.
Interest Only Mortgages
Using an interest only, lifetime offset mortgage, customers will initially only be expected to repay the interest on their loan, making monthly payments that much easier.
However, it should be remembered that customers will also be expected to put money into a suitable investment vehicle that will be used to repay the borrowed amount in full once the mortgage period has ended.
The table above should make it easier for you to compare the important aspects of different offset mortgage deals.