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The Benefits of an Offset Mortgage

Even though you may not have heard of an offset mortgage before, don’t let the unknown scare you off. Having an offset mortgage may well be the solution to your mortgage problems!

An offset mortgage aims to reduce the amount of interest to be paid on the total mortgage sum borrowed. The interest that you will be paying back is calculated on a daily basis so as to try and benefit you the most.

Am I eligible for an Offset Mortgage?

Offset mortgages can be particularly great for the following: 

  • Those with savings
  • Self-employed individuals
  • Those earning commission/bonuses
  • First time buyers with a higher income

It is generally understood that the interest rates are likely to be higher on an offset mortgage, meaning that they are particularly well suited to those with savings who can then fund any sizeable increases in interest quite easily. The fact that an offset mortgage can be repaid in overpayments means that it can be an invaluable asset to those with savings so that those who can, should utilise this opportunity fully.

Self-employed people can also benefit in a similar way. They can take advantage of a greater income one month by paying more towards their offset mortgage. This freedom can contribute to you feeling more secure in your financial situation as you have more of a say in what is happening. Similarly, those who earn commission or bonuses can also make the most of an offset mortgage and the leniency for allowing higher repayments.

As offset mortgages tend to be calculated on what you can afford in the present rather than your income it means that first time buyers with savings have a good chance of obtaining an offset mortgage.

What Are My First Steps?

An offset mortgage isn’t for everyone but it could be the option for you. It’s important that you start by consulting an experienced broker such as The Mortgage Broker Protection Ltd. Their advisors are experts on offset mortgages and can talk you through every aspect of this product, so that you can make the right choice. The Mortgage Broker Protection Ltd understand how this seemingly small decision can impact your lifestyle for years to come.

Make the first move, give The Mortgage Broker Protection Ltd a call to discuss an offset mortgage and let them do the hard work for you! 

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

Upon application a fee of up to £495 will be payable (typically £195)

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