Figures from the Council of Mortgage Lenders (CML) suggest offset mortgages are becoming increasingly popular. Last year alone, 170,000 offset mortgages, worth £29bn were taken out, accounting for almost 7% of all new UK lending.

What is an Offset Mortgage?

Offset mortgages allow those with considerable savings to reduce their effective mortgage balance, whilst keeping instant access to their money. Lenders subtract the savings balance from the total mortgage amount and then only charge interest on this reduced figure. So, if you had a £150,000 mortgage with savings of £20,000, you would only pay interest on £130,000. They also have the bonus of allowing flexible repayments.

Figures from Yorkshire Bank suggest that around 30% of UK borrowers (4 million people) could benefit from an offset mortgage. I would suggest seeking professional advice from an independent, qualified mortgage broker or IFA to see if an offset mortgage is right for you.

Such as 1mortgagesuk.co.uk which can provide you online enquiry on all types of mortgages, remortgages,bad credit mortgages and secured loans.