Offset mortgages reduce mortgage term, says IF

Homeowners using offset mortgages could see their loans paid off an average of two years ealier than other mortgage products, argues Intelligent Finance. Figures quoted by IF suggest someone with an average mortgage of just over £125,000 and saving of around £6,000 could save themselves over £12,000 - the equivalent of two years worth of mortgage payments - providing the loan is taken at 71% Loan To Value (LTV). Offset mortgages work by ensuring interest is not paid on a holder's savings accounts held at the same bank but instead reduces the interest on an equivalent amount of the...