Offset mortgages are gaining popularity, now making up 10% of new mortgages, mainly due to their flexible repayment options and convenience. These mortgages work by applying interest only to the remaining loan amount after subtracting any savings held by the borrower.
These mortgages are particularly beneficial for those who have saved at least 8% of the total mortgage amount. By linking their savings or current account to the mortgage, borrowers can enjoy a lower interest rate. The flexibility of offset mortgages also allows for extra payments when finances are good and smaller payments during tougher times, though you must make extra payments before opting for reduced ones.
In today’s credit-tight environment, getting future loans can be hard, but offset mortgages provide a chance to borrow the same amount again. Offset Mortgage Providers can guide you through all the options available. While some providers offer a low Annual Percentage Rate (APR), they might include Early Redemption Charges (ERC).
Offset mortgages can be customized to suit different needs, whether you’re dealing with various types of properties like trailers or flats. They can be adjusted based on your financial situation, whether you want a long-term or temporary link of your account to your mortgage. With numerous options, offset mortgages make the repayment process easier, so working with a reputable Offset Mortgage Provider is a smart move.