Offset Mortgages / Remortgages
Sometimes these are called ‘current account’ mortgages. Offset mortgages are in essence flexible mortgages. Offset remortgages link your savings for the purpose of calculating interest on your remortgage.
Example: You take out a £125,000 offset remortgage and you have £25,000 in savings linked to it. You will only pay interest on £100,000 lending.
Basically, offset mortgages work by using your savings as security as a means to reduce the monthly repayment. There is great flexibility to overpay, underpay or even not pay. Offset mortgages works best for people who can save quite a lot of money. An offset mortgage works best when there are regular financial contributions and it is important to keep up repayments. To put simply, it works best for people with savings.
The advantages of an offset mortgage is that it can reduce your monthly repayments, reduce the time to pay off the mortgage and still use the savings linked to the offset mortgage. Offset mortgages can save you money on interests and pay off the mortgage early.
At Go Remortgage, we have a whole range of offset mortgage deals. Speak to one of our mortgage advisors who will offer you no obligation free advice on your next step based on your current situation. Our sole aim is simple, to help you get the most from your mortgage as simply and as efficiently as possible.
An offset remortgage is a good option for people with substantial amount of savings in their bank or building society accounts. The more you have on your savings, the less interest you pay on your offset remortgage.
