offset mortgage

Current accounts have two different ways in which money can be lent: overdraft and offset mortgage.

Offset mortgages allow deposits to be counted against the mortgage loan.

Take a look at our selection of example scenarios and see how an offset mortgage could potentially transform your own financial situation.

Offset mortgages allow you to combine your borrowing with your savings.

Another alternative to a straight repayment mortgage might be an offset mortgage.

Chasing after the best mortgage rates costs time and money but with an offset mortgage this could become a thing of the past.

For example, in the UK offset mortgages are often marketed as offering "tax efficient" savings.

In July 2001 the bank's Offset Mortgage was launched.

In Ventnor, the owners can keep one rental apartment to help offset mortgage payments, but only for the summer.

A specific type of flexible mortgage common in the United Kingdom is an offset mortgage.

There's a fixed rate on the amount I already had borrowed and an offset mortgage my accountant arranged on the extra.

Still unsure about offset mortgages?

The key feature of an offset mortgage is the ability to reduce the interest charged by offsetting a credit balance against the mortgage debt.

The offset mortgage provides many the opportunity to save tens of thousands of pounds in interest charges and pay off their mortgage years early.

Niki Chesworth explains how both savers and borrows could benefit from linking their savings to an offset mortgage.

Offset mortgage - a mortgage where the borrower can reduce the interest charged by offsetting a credit balance against the mortgage debt.

I think offset mortgages are a good idea - with interest rates falling deposits returns are now ridiculously low and it's better to save on the mortgage rate, which is loaded.

United First Financial, which offers a mortgage reduction program similar to the offset mortgage, won the Ernst & Young Entrepreneur of the Year regional awards in 2008.

Offset mortgages may have tax advantages for the borrower, since instead of earning interest on the credit balance (which may incur tax), the credit earns a reduction in the mortgage interest paid (which does not).

Legalizing accessory apartments, Miss Lazar said, will enable a single parent to either keep his or her home after a divorce or find something similar that enables such a person to have a legal apartment to offset mortgage costs.

Generally speaking, your money would only be better off in your offset mortgage account if there isn't the opportunity for your money to earn the equivalent rate of interest or more elsewhere in savings or another investment plan.

The company pioneered the offset mortgage in the UK and; was conceived as a joint venture between Virgin Direct (Virgin's financial services company) and The Royal Bank of Scotland in 1997.

An offset mortgage was a type of mortgage common in the United Kingdom used for the purchase of domestic property, the key principle is the reduction of interest charged by "offsetting" a credit balance against the mortgage debt.

"Other strategies worthy of consideration are paying off expensive debts - such as store cards, credit cards and overdrafts - and, for higher rate taxpayers especially, opting for an offset mortgage as it effectively pays tax free interest on savings at the mortgage rate."