Offset mortgages make better use of savings, says expert

Date:Tuesday 23rd March 2010
Author: Susanna Kavka

Kevin Bray, insight analyst at Defaqto, said an offset mortgage could help people to make their savings work in their financial interests to reduce their mortgage term, but advised homeowners to choose carefully.

He added: "For the right offset mortgage, look beyond the cheapest rate on offer. Look for specific product features that suit your financial needs as these vary enormously."

Research undertaken by the organisation found that 102 of the 307 available cash Isas offered a rate of three per cent and also compelled customers to fix their savings for three years, charging a penalty for withdrawals.

The Financial Services Authority recently found that the total value of outstanding mortgages was £1,207 billion in the last quarter of 2009.

It was also revealed that the number of new arrears cases fell in each quarter of last year.