A Guide To Offset Mortgages | Mortgage Broker in Leeds

A Guide to Offset Mortgages in Leeds

Offset Mortgage Advice in Leeds

Needs for offset mortgages have dropped since the 1990s, although they’re still a great option for customers who are able to put something aside each month. They’re also good if you think you may receive a lump sum soon.

How do Offset Mortgages work?

When you take out an offset mortgage, the lender will give you a savings account to go along with it, solely for the purpose of the mortgage. Rather than attracting interest, the money offsets against your mortgage balance. For example, if your mortgage is worth £100,000 and you have £18,000 in savings, then you pay interest on the remaining £82,000.

Is an Offset Mortgage a good idea?

It’s a smart move if you are due a lump sum for any reason, such as future inheritance, as you can store your money until you are ready to decide what to do with it due to it being interest-free. This can apply to any annual or quarterly bonuses from your job that you don’t rely on.

An offset is an excellent opportunity for First Time Buyers who want to overpay on their mortgage. Overpaying can reduce your mortgage payments for your next term, leading to a reduction on your interest rates too, with other mortgage types, the money you put in cannot be taken out again until the end of your term, which can be less than ideal if you change your mind or need to take some of it out early.

This is where Offsets are handy, you have a savings account, you can take out the funds at any time, then put them back in when you’re ready. So, if you’re looking to make additional payments on your mortgage over time, we’d highly recommend taking advantage of the Offset savings account as you go.

We’d be Happy to Help you

Make sure to consider all your options when speaking to a Mortgage Advisor in Leeds. Some consumers who like Offset Mortgages tend to keep these types of mortgages going and therefore, don’t tend to remortgage. Your advisor should be able to show you the impact of how an Offset can save you money over the course of the full term.

If you have any questions or require any help regarding Offset Mortgages or wanting to Remortgage, then get in touch with one of our friendly Mortgage Advisors in Leeds, and we will be happy to help discuss the topic further.


Malcolm's
mortgage guides









What Does Remortgage in Leeds Mean?

Taking a look at what remortgage in Leeds means, what defines a remortgage in Leeds & the reasons that people may remortgage in Leeds.









Do You Need a Deposit to Remortgage in Leeds?

A look at whether or not you need a deposit if you are looking to take out a remortgage in Leeds on your property and what to consider.

Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2023 Leedsmoneyman

Leedsmoneyman, Wizu Workspace, 32 Park Cross Street, Leeds, LS1 2QH.

Moneyman Logo







Moneyman Logo




Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo