If you have never heard of an Offset Mortgage, now might be the time to learn.
As interest rates continue to be an ever changing aspect of our financial lives, more attention is being paid to products and services that were not considered the norm 12 months ago. One of those products is the Offset Mortgage.
But what is an offset mortgage?
Let’s answer that with an excerpt from our Guide to Offset Mortgages.
An offset mortgage functions similarly to other mortgages in most regards:
It is a secured loan enabling you to buy a property or remortgage a property.
It can have a term of up to 35-40 years, it can be capital and interest or interest only.
It can have a fixed-interest rate, or something else.
Where an offset mortgage is unique is with the addition of a linked savings account.
When the new mortgage starts, the borrower will designate a savings account (usually a new savings account with the same lender offering the mortgage) which will be linked to your mortgage. Any funds deposited in the linked savings account will be, as the name suggests, offset against your mortgage balance, meaning you only pay interest on the difference between the two balances.
Our Offset Mortgage Guide
Financial decisions are specific to individuals and therefore it is important for consumers to be educated about their options. To learn more about Offset Mortgages we have created a detailed guide as a place to start your research.
This guide is no replacement for the advice of a qualified and experienced mortgage advisor. Once you’ve given it a read, if you still have questions or want more guidance on if this product is right for you reach out to our team.