Offset mortgages are not the ‘go to’ mortgage for most, but they can turn out to be a great option to go on. It provides an opportunity to the customers to reduce the interest to be paid.
Offset mortgages can help pay off your mortgage quicker, as well as coming with tax benifits.
This is a form of mortgage that connects the outstanding balance with a savings account (normally through the same financial provider).
The balance you have on your bank account reduces your mortgage interest. You should only pay interest on £200,000 on your mortgage, for instance, if your mortgage was £300 000 and you had £100,000 in your associated savings account.
An offset mortgage offers flexibility, as you are able to add or remove funds from your offset savings account as and when required, meaning the cash is still available should you need it.
Also, you are able to reduce your interest and monthly payments by adding funds to your offset savings account. I.e. if you know you are going to be paid large bonuses these could then go into your offset account to reduce your payments. An offset could turn out to be the best way for a first time buyer in Cardiff who is looking to overpay on his mortgage.
Offset mortgages appear to be of special benefit to higher taxpayers or additional taxpayers and to persons who do not rely on the increased interest to fund their daily lives.
An offsett mortgage is a specialist subject and is not the right option for most. However, our mortgage advisors in Cardiff have vast knowledge when it comes to offset mortgages and will be able to advise if it is the right option for you.
Take some time to consider all the possible options and outcomes while speaking to Mortgage Advisor in Cardiff. It is necessary to consult an advisor to know more about the impact of Offset and how would you be getting the benefit from it in the long run.
If you need any sort of help or just want the questions to be answered or you have made the decision to remortgage in Cardiff. Then get in touch with our Mortgage Advisors in Cardiff. We will be more than happy to recommend you the most suitable mortgage for your individual financial circumstances.