10 Feb

Offset mortgages are 'the way to go'

Offset mortgages are 'the way to go'

More people in the UK should be taking advantage of offset mortgages to make sure that they are saving money in the long run, according to one expert.

An offset mortgage is one where the holder can make use of their savings and extra finance in order to bring down the rate of repayments on their mortgage on a monthly basis.

Paula John, editor-in-chief at Your Mortgage, said it was "staggering" that more people in the UK are not taking advantage of the mortgage type.

"Rather than putting it into a savings account, earning a paltry level of interest at the moment and then paying tax on any interest that you do earn, you can automatically overpay your mortgage.

"You are effectively saving it, you are not paying any tax on it and you don't have to lift a finger to do it."

Earlier this week, it was predicted by MyMortgageDirect that there may be an increase in hybrid track and fix mortgages in the market over the coming months.ADNFCR-1222-ID-801290255-ADNFCR

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