Offset rates fall to new low
Charlotte Nelson, finance expert at Moneyfacts, said: “With competition high in the mortgage market, providers are keen to show that they offer a diverse range of mortgages at great prices, and offset products only enhance their offerings further.
“Thanks to the record-low base rate, standard savings accounts currently offer poor returns, so many consumers are looking for better ways to use their cash savings. Offset mortgages can offer a genuine alternative.”
Offset mortgages allow borrowers to use their cash savings within an offset facility to pay off substantial sums on their mortgage and drive down the mortgage balance quickly. But, unlike overpayments, borrowers can access the cash whenever it is needed.
Nelson added: “One of the biggest criticisms of offset mortgages is that the rates tend to be higher than standard mortgages on the market. However, with rates reaching all-time lows, there has never been a better time for savvy borrowers to grab themselves an offset deal.”