Offset mortgages 'a realistic possibility' for many
20th Aug 2012
People who are keen to pay off their mortgage quickly and have the self-discipline to do so may find that offset mortgages provide them with an effective option, it has been noted.
Catherine Hearnden, director of MyMortgageDirect, said that the reason more people do not take advantage of offset mortgages is partly is to do with the rates generally being a little bit higher.
Generally, people have been shopping around for the lowest rate, as they have not had much in the way of savings and often had more debt than savings, the expert pointed out.
"That does seem to be turning around a little bit so that people are more savings orientated than they were. It is not all about borrowing now," she added.
Ms Hearnden explained that rates are unlikely to become more competitive, as it is only still a small market.
This is because, as well as having to have savings, people also need the discipline not to spend the savings, as otherwise it is a pointless exercise.
It is really designed for people who are keen to repay their mortgage. You have got to have the mindset that you really want to repay your mortgage and not that it is going to go on forever.
Posted by Staff Writer: Ewan Robertson
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