READER QUESTION
Q My fixed-rate deal comes to an end soon and a friend suggested an offset mortgage. What is this?
An offset mortgage links your home borrowing to your money in a savings account. The value of your offset savings account is deducted from your mortgage balance, and you only pay interest on the balance – that is, the mortgage minus your savings. However, offset mortgages tend to have higher rates of interest and you won’t earn interest on your savings. Find out more.