1 Aug

Offset mortgages are good for those with money

Offset mortgages are good for those with money

Offset mortgages could be beneficial this year for those looking for a way to save, but only for homebuyers with money and people looking to move into the buy-to-let sector.

This is the opinion of Catherine Hearnden, director of MyMortgageDirect, who said that they can be good for people who have a fair bit of savings to offset against their mortgage.

"They are very good because you don't pay tax on the savings interest and you are getting the equivalent of your mortgage interest rate on the savings, so they are excellent in that respect," Ms Hearnden said.

Mortgages can be difficult to come by at the moment in the UK, and some homeowners need to raise up to 25 per cent as a deposit.

However, Ms Hearnden said that the advantages of taking on an offset mortgage if you have cash is that, with base rates so low anyway, you can get good rates based on your own savings.ADNFCR-1222-ID-801420391-ADNFCR

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