Offset mortgages

An Offset mortgage combines the borrower’s mortgage account with their savings/current account. All payments into the current/savings account can reduce the amount outstanding and the interest payable. The funds in the savings/current account offset the borrowings in the mortgage account.

Alternatively a Current Account Mortgage has one single account, which is the equivalent to a very large overdraft.

The main advantage is if the spending is minimised and within the agreed limit, the interest payable is considerably reduced. The interest is also tax free within an Offset mortgage.

The main drawback is some borrowers are uncomfortable with putting both mortgage and savings into the same basket. Some borrowers may also exceed the agreed spending limit as the monies are easily available, hence not reducing the amount owed.

If you require offset mortgage advice and you’re a first time buyer; please submit your details above and one of our mortgage brokers will call you. We Know Mortgages Ltd have access to thousands of mortgage products across the high street and building societies. We’ll guide you through the mortgage process from start to finish. We are based In Manchester city centre.