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What is an Offset Mortgage?
An offset mortgage is a little more complicated than the average mortgage deal. Explained in a nutshell it puts all of your finances into a new account that comprises of everything like your loans, mortgage, savings and current account.
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Every day the interest is calculated on your mortage and loans, but it deducts your savings and the money in your current acount 1st which efectively reduces the amount of interest you pay. Note - you do not earn any interest on your savings as you are taking advantage of the savings amount being deducted from the larger interest amount you owe.
Offset Mortgage Advantages
You effectively don't pay tax on yuor savingsas they are part of a negative balance in your offset mortgage account.
Your money is kept in sub-accounts or 'pots' making it easy to see what you have and where it is. This makes it easier for your money to work harder for you.
Offset Mortgage Disadvantages
Interest rates are slightly higher due to their flexibility.
They can be difficult to understand initially to the borrower.
Visit www.aph.org.uk and let us find you an offset mortgage lender. | 
