“Research from Moneyfacts.co.uk reveals that offset rates have fallen to record lows with the average offset fixed rate now priced at 2.65%, over one percentage point lower than two years ago (3.68%).

“With competition high in the mortgage market, providers are keen to show that they offer a diverse range of mortgages at great prices, and offset products only enhance their offerings further.

“Thanks to the record-low base rate, standard savings accounts currently offer poor returns, so many consumers are looking for better ways to use their cash savings. Offset mortgages can offer a genuine alternative.

“It makes sense for those with a mortgage to utilise their cash savings within an offset facility to pay off substantial sums on their mortgage and drive down the mortgage balance quickly. But, unlike overpayments, borrowers can access the cash whenever it is needed.

“One of the biggest criticisms of offset mortgages is that the rates tend to be higher than standard mortgages on the market. However, with rates reaching all-time lows, there has never been a better time for savvy borrowers to grab themselves an offset deal.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.