Mortgage Information

Mortgage Types

Offset Mortgages

Offset mortgage allows a borrower to keep balances (such as mortgage debt, savings account and current account) in separate accounts, but, for the purposes of interest calculation, all balances are aggregated. Money in savings or current accounts is set against the mortgage balance and interest is only charged on the outstanding amount, meaning interest payments are reduced.

Having this type of mortgage helps you to pay your mortgage much faster and it’s cheaper too. Unfortunatly you would not get any of the interest on your current and savings account.

The base rates are normally low, this simply means that instead of getting little interest on your bank accounts, it works to decrease your mortgage payments, and giving you a chance to pay it off quicker.

You may have other debts, e.g. Loans to pay off or even credit cards. This can be repaid at a simple mortgage rate, and will be smaller than the rate if you choose to borrow.

There are many advantages; one is that loans and credit cards remain unsecured borrowings, regardless of being paid off at the existing mortgage rate.

People who have large sums of savings or are self-employed or even people with fluctuating incomes will find offset mortgages very useful.

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