Offset mortgages are worth a look
‘OFFSET mortgages make good financial sense - why pay 6% interest on your mortgage while your savings are languishing in a current account receiving 0.1% interest? Along with their sister products - current account mortgages - offset mortgages allow savers to reduce debt by balancing their savings against their mortgages.
The overall debt is reduced, as is the interest, which is calculated on the lower amount. But in spite of the fact that offset mortgages have been available in the UK since the early 1990s, the take-up remains relatively small.
The last time the Council of Mortgage Lenders surveyed the market was in spring 2003 and only 3% of mortgages fell into the category at the time. Even allowing for increases since then, the market is still a niche.
One reason for the lack of popularity is that homeowners are accustomed to keeping their mortgages separate from any other financial products.’
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