Offset mortgages

OffSet mortgages allow you to do several things:

1. Overpay into your Offset mortgage without penalty. Lump sums and regular monthly overpayments are fine.


2. If you find you are short of money you can take money back out of an Offset mortgage (as long as you have previously overpayed)


3. Have itemised ‘savings pots’ so that you can save for particular things and easily keep track of that saving, eg saving for a holiday a car or saving for a business VAT bill.


4. If you are a higher rate tax payer, and you put capital into your savings pots, you will not pay any tax on the interest that would have been due with a conventional savings or current account.


5. You may have unpredictable cash flow - if you are self-employed, receive occasional large bonuses or commission, or work on highly-paid short-term contracts, any large sums you receive can be put into your savings pot and will start working hard for you immediately, as your interest is calculated daily. This could also be the case with other sources of income such as rent


6. People often dislike consolidating loans and credit cards into their mortgage - they feel it will be sitting there for years However if you consolidate with an Offset mortgage, you can make overpayments every month to clear the additional borrowing as quickly as you want.
   
   Not all Offset mortgages have all these features, so you need to research any Offset mortgage carefully to make sure it meets your needs.
   
   There are some excellent Offset tracker rates from 2.97% (3.1% APR)

Want more info? 0845170 20 20 or 07855 799 807

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http://www.usefulmortgages.co.uk/