Offset Mortgage , Therefore Here is a basic info
Today we want to tell our readers about Offset Mortgage . So keep reading our full article, here is a info about Mortgage.
What is a mortgage?
What is an Mortgage..??? Offset mortgages can seem confusing at first as not many people are aware of what they are. The idea behind an offset mortgage is pretty straightforward and those who take them out can benefit from potentially rather dramatic savings.
Basic idea behind an offset mortgage is that your savings account and your Mortgage are both combined into the same account so that any savings you have can count as temporary over payments towards the repayment of your debt…
The key benefit is that you still have access to your savings so you can spend them if you need to.
kind of savings can expect with an offset mortgage
If you have a mortgage worth £150,000, and have £20,000 in a savings account, then with those savings offset against the mortgage value, you’d only be paying interest on the £130,000 difference…
The savings you’d make on interest will, in general, be greater than the interest you’d earn if you simply left your money in a conventional savings account.
So by offsetting your lump sum savings against your mortgage and making regular deposits into the account, you could save yourself thousands of pounds in interest throughout the course of your mortgage.
Take out a mortgage
Offset tend to have higher interest rates than those attached to conventional mortgage plans, but with the right amount of savings, you should still end up saving quite a lot of money.
There are various mortgage calculators available online that you can use to work out exactly how much you’d save, but by talking to a mortgage specialist financial advisor you’ll be able to work out whether or not it’s the right move for you.
It all depends on the size of your savings and how much you’re regularly depositing. As well as of course on the size of the mortgage to begin with.