What Are Offset Mortgages?

An offset mortgage is a mortgage which enables you to use your savings to make your mortgage payments lower. This is done by linking your savings and mortgage accounts, for example if in your savings account you have £20,000 and your mortgage is £100,000, through an offset mortgage you will only pay interest on the difference, which in this case would be £80,000. The interest rates are usually linked to the base rate at the Bank of England. There are two types of offset mortgage deals, the offset mortgage packages link all your savings together but they remain in separate accounts, where a current account mortgage keeps all your saving together in one account. Which deal you decide on is based on individual circumstances.

Pros & Cons

• An offset remortgage is a great option for homeowners with a sizeable amount of savings, especially those paying a higher rate of tax.
• An offset remortgage basically allows you to use your savings to offset against your mortgage, enabling you to pay off your mortgage early and pay off your debts ahead of time.
• The flexibility of these remortgages allows you to repay changeable amounts, so you can underpay or even pay off lump sums when you can afford to do so.
• You can’t really touch your savings - if you go and buy that car you’ve always wanted your repayments will shoot up.

For some specific examples of how much you could save, read this offset mortgage article from MSN Money UK.

Our Offer to You

At Remortgageexplorer we search from some of the top mortgage lenders within the UK. We understand that each application is unique; therefore we strive to find a remortgage from a lender that is tailored to your specific financial needs and requirements. With competitive and low rates we are dedicated to securing a remortgage deal that works for you. We have a number of specialist lenders who deal with offset remortgages who will ensure that your mortgage and savings give you a fantastic deal that is affordable. Whatever your financial or employment status we will find you an offset remortgage package that reflects your circumstances, as we have lenders who specialise in specific issues that may create barriers when securing a remortgage such as irregular income and existing debts. A mortgage is a substantial financial commitment; therefore it is important you secure the right mortgage package.

If an offset remortgage sounds like a viable option for you then simply complete our quick and easy remortgage application form and we will do all the hard work.