Offset mortgage could offer people more for their money

Date:Wednesday 26th May 2010
Author: Max Freedman

The Fair Investment Company has highlighted the benefits of taking on an offset mortgage, suggesting it makes financial sense in certain circumstances.

Nick Scarrett, head of pensions and investments at the company, highlighted how many people are currently paying more on their mortgage than they are earning on their savings.

He claimed people who have little left to pay on their mortgage are better off using their Isa allowance, but for individuals who have a significant home loan it is wise to offset the deal.

Mr Scarrett explained: "Offset mortgages link the balance of your mortgage to money held in savings, which allows you to offset the credit balances in your current and savings accounts against the mortgage balance."

Fair Investment Company director David Doulton recently described the UK economy as fragile and claimed the low base rate makes offset mortgages an option to consider.