Offset Mortgages

Offset mortgages are also known as Current Account Mortgages. By taking this type of mortgage you can make the money in your current or savings account work harder for you. It works by reducing the balance of your mortgage by the amount in your current or savings account. So, for example, if your mortgage loan was £100,000 but you have £7,000 in your savings account you will be charged interest on only £93,000 of your mortgage. As the interest on your savings is being offset, you are effectively paying no tax on the interest earned on your savings. For a higher rate taxpayer offsetting savings against a 6% mortgage product is the equivalent to earning 10% on your savings. It is clear to see why an offset mortgage is a popular choice of many borrower's. If you would like to know more about this type of mortgage just give us a call and speak to one of our friendly advisors today.