Offset Mortgage Explained | Offset Mortgage Advice from Go Direct

Q: What is an offset mortgage?

Offset mortgages allow you to put all your money in one place - from your mortgage and loans to your savings and current account. This can give you the flexibility to live your life differently.

What is an Offset Mortgage?

Offset mortgages allow you to put all your money in one place - from your mortgage and loans to your savings and current account, giving you the flexibility to live your life differently.

With an offset mortgage you get the best of both worlds - the flexibility and value that comes with putting your money in one place and the security of being able to see and manage your finances any way you like.

Offset Mortgage Calculator

Many of the major offset mortgage lenders such as Intelligent Finance and The One Account have offset mortgage calculators to help you see how much you could save with an offset mortgage. Simply click on the links above to visit the mortgage lenders website to see if an offset mortgage can save you money. Alternatively compete our offset mortgage advice form and let one of our professional advisors see if an offset mortgage is right for you.

Your home may be repossessed if you do not keep up repayments on your mortgage

Pros and Cons of Offset Mortgages

Pros

You can pay off your mortgage early, without penalty, by making overpayments
You can borrow against mortgage overpayments or equity in the property more easily, and at a lower interest rate than a 'standard' loan. (dependent on the type of flexible mortgage)
You are able to change mortgage at any time without being penalised as here are no early redemption penalties
You can benefit from a fall in the Bank of England's base rate that leads to a subsequent fall in your lenders standard variable rate

Cons

No stability when compared to a Fixed rate mortgage
Interest rates are often high than a comparative standard discounted rate.

Offset mortgage key points

allows you to:-

You pay a single low interest rate on everything you borrow, your mortgage, loans and credit cards
You get a great return on your savings and the money that normally sits idle in your current account - with no tax to pay
You get complete flexibility on how much you pay on your mortgage each month you always have complete access to all your money
You manage your money in the way that suits you – by telephone, internet or in the bank branch
You can use the account to plan your future - tell us what you want to get out of life and we'll help you get there
You can see your money how you want - look at one balance or break it down so you can see your mortgage, loans, savings and current account money as individual balances

You can visit the Accord or Coventry BS website to do a quick calculation of the savings you could make. You can also check how much you can borrow, how much your monthly payments would be and take a look at the Accord or Coventry BS mortgages eligibility criteria.

Additional information can be found on Go Direct mortgages on the best offset mortgage deals.

Do you want No Fee Offset Mortgage Advice?

If you would like to discuss offset mortgage or remortgage schemes with a professional mortgage advisor please complete our mortgage advice form and an mortgage advisor will contact you to discuss your offset mortgage requirements.

Offset Mortgages Explained