Offset Mortgages

Offset mortgages are a type of product that lets you link your mortgage to your savings. The savings balance is used to reduce the amount of interest charged on the mortgage. Your savings will be “offset” against the value of your mortgage, and you’ll only pay interest on your mortgage balance minus your savings balance. Your savings don’t actually repay any of your mortgage, they just sit alongside it and save you interest. Offset mortgages can either help you reduce your monthly payments, or shorten the term and help you get mortgage-free sooner.

• You can get at your money quickly – it’s not locked away.
• A small amount of savings can make a big difference – a modest pot of £2,500 could shorten a £100,000 mortgage by seven months over a 25-year term!
• The mortgage interest rates are not that much higher. Like any financial product, there are more and less competitive rates, so let us shop about on your behalf and ensure we obtain the most suitable rate.
• You don’t have to have all of your savings in one account.

The Independent Mortgage Store has helped hundreds of clients pay their mortgage off early over the last 20 years. Prior to the credit crunch in 2008 we were one of the largest introducers of offset mortgages to The One Account as well as utilising other producers such as Standard Life Bank and Intelligent Finance. Immediately after the credit crunch most offset lenders vanished from the market. However with a strengthening mortgage market offsets are back and in a big way. We have a team fully trained in offset products so why not have a chat with us and clarify how many years we can potentially strip off your mortgage term.