Flexible option
Bernard Clarke, communications manager of the Council of Mortgage Lenders, says the flexibility offered by offset mortgages is also what appeals to a range of individuals.
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This flexibility can work well for borrowers who would otherwise keep some savings in what is likely to be a low-yielding deposit account.
If they need to draw on their savings, they are usually able to do so easily, with little or no notice – though obviously at the cost of an increase in their mortgage payment at the end of the month.
Mr Clarke says: “So, they can be a good option for someone who has some savings to offset against the mortgage cost, but who may need the flexibility to draw on those savings for another purpose.”
emma.hughes@ft.com
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