Offset mortgages popular
A recent survey carried out by one expert showed that homeowners are choosing an offset mortgage rather than their savings, to pay off outstanding home loans.
A broker from Cobalt Capital, Andrew Montlake spoke further explaining that this method would allow consumers to pay off the amount borrowed more quickly and would offer a better flexibility.
It was claimed that by selecting the offset mortgage option, homeowners would need to pay off the debt while also retaining the ability to dip into outstanding savings, if it was required.
Mr Montlake commented: "You''d have complete flexibility and not need to worry about going through the sometimes lengthy process of taking out a further advance should you need the cash in the future."
Offset mortgages reduce the balance of homeowner’s savings from the mortgage, so interest is only paid on the alternative.
One of the greatest brokers, London & Country, David Hollingworth, spoke to the Independent explaining that savings which are equivalent to at least five to ten per cent of the mortgage will be needed before applying for this type of mortgage deal.
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