Brits to consider offset mortgages?

Posted: 31 Oct 2011 16:05:17 GMT

Low interest rates and high inflation are making offset mortgages increasingly attractive.

Britons looking to make the most of the current economic climate may be wise to consider the benefits to be had through offset mortgages.

This is because MoneySupermarket has identified the products as ideal in times such as these, with inflation standing at record levels and interest rates remaining low.

According to the price comparison website, these home loans can help protect cash from destructive elements as they set the borrower's savings against the total debt of their mortgage.

Clare Francis, site editor at the portal - which was first established as an offline business in 1993 before the website was launched in 1999 - said: "Offsetting is particularly attractive for higher and top rate taxpayers because you pay less tax due to the fact that you don't earn any interest on your savings."

The industry figure observed this means a person's savings are used to help reduce their home loan arrears at a much quicker rate.
 

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