A recent study by
Intelligent Finance has revealed that British people could potentially be
saving approximately £850 million simply by making the move to offset mortgages.
The figures displayed that an astonishing one in four
homeowners might save
money with an offset mortgage. This could save an average of £370 during the first year of repayments.
An offset
mortgage takes into
account any money that a consumer may have in saved in a
bank, and reduces the value of the
loan accordingly. Accordingly, any
savings that a customer has means a reduction in
mortgage debt, and hence a lower interest payment.
The offset mortgage, introduced by Intelligent
Finance in this country, is not merely for people with vast savings accounts. As little as £10,000 set against a £100,000 mortgage could save over £20,000 throughout the entire term of a mortgage.
Offset mortgages are growing in popularity amongst the nation’s homeowners, although many people are simply unaware of the potential benefits that they could access.
The research, conducted by Intelligent Finance just shy of their fifth birthday, brought to light numerous reasons why consumers would be better off with an offset mortgage.
