10
Feb
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.