Offset mortgages are good for those with money
Offset mortgages could be beneficial this year for those looking
for a way to save, but only for homebuyers with money and people
looking to move into the buy-to-let sector.
This is the opinion of Catherine Hearnden, director of
MyMortgageDirect, who said that they can be good for people who
have a fair bit of savings to offset against their mortgage.
"They are very good because you don't pay tax on the savings
interest and you are getting the equivalent of your mortgage
interest rate on the savings, so they are excellent in that
respect," Ms Hearnden said.
Mortgages can be difficult to come by at the moment in the UK, and
some homeowners need to raise up to 25 per cent as a deposit.
However, Ms Hearnden said that the advantages of taking on an
offset mortgage if you have cash is that, with base rates so low
anyway, you can get good rates based on your own savings.