Offset mortgages
An offset mortgage gives the borrower all the benefits of a flexible
mortgage, such as the opportunity to under or overpays their monthly repayments.
The only difference however, is that the borrower’s finances are
linked together with the same lender. Therefore, the borrower’s
current account, savings and mortgage as well as any credit cards or personal
loans they may have acquired along the way is responsibility of the lender.
With the borrower’s accounts being brought together as one it allows
for the lender to offset all the ones in credit against the others that
are in debt, i.e. personal loans or your mortgage. This means that the
borrower does not have the interest on their current and savings accounts
credited to them but instead have the equivalent amount deducted from
the debt incurred from the mortgage they are repaying.
For an extensive list of websites containing information regarding offset
mortgages click here.
If you are looking for a loan other then a bridging loan, we recommend
that you visit Loans UK.
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