An offset mortgage permits you to use your financial savings to lessen the amount of mortgage you pay, as you’re saving are offset against your outstanding mortgage balance. It links your financial savings and your mortgage so that any interest saved does not pay tax.
This means that instead of earning interest on your savings, you pay less interest on your mortgage. So, for example, if you have a mortgage of £125,000 and you have £25,000 in your linked accounts, then your monthly mortgage interest would be calculated on £100,000 instead of the balance of £125,000.
At the same time as an offset mortgage can save you money and shorten your loan time period, they can be at a higher rate than comparable offers, and there may be fewer deals available.
To discuss the suitability of an offset mortgage for your property in the Antrim or Ballymena area, contact us today https://mortgageoptionsni.co.uk/contact-us/ your local independent mortgage broker
As a loan is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.