Do you want to reduce the interest on your mortgage by the funds that are in both any savings account and current accounts? With an offset mortgage, the more you have in your savings account, the less interest you will have to pay on your mortgage. This will help you pay off your mortgage quicker and will be cheaper in the long term. You you agree to an offset mortgage, you don't get any interest on your savings or current account.
An offset mortgage is a good idea at the moment, as base rates are low, which means that savings rates are not very good. Rather than working to give you small amounts of interest, you could make your savings work for you with an offset mortgage, by cutting interest down, helping keeping mortgage payments lower and repaying your mortgage off a bit faster.
Also included in this is all your other debts like personal loans and credit cards. They will all be linked into your offset mortgage. It allows you to pay all debts you own at the mortgage rate, which will probably be lower than what you are paying on these borrowings. Even if your cards and loans are unsecured borrowings, they stay that way even with you paying off at the mortgage rate. Even if you can't keep up with those payments your home is not at risk.
Remember that by consolidating all your debt into an offset mortgage you are changing the short term debts into one long term debt. With an offset mortgage, consolidated debts should be paid as quickly as possible, or else they might cost you a lot more in the long term.
Basically, without losing accessibility to your funding, an offset mortgage is similar to putting all your savings into your mortgage.
You are able to see all of your savings and debts in their separate accounts, but they will still all work together. Some people prefer this method, rather than current account which mixes all the accounts together almost as if your overdraft is colossal.
People with unstable incomes may find an offset mortgage perfect for them, such as self-employed people or people who are often paid in large bonuses. If you have a large amount of savings, this type of mortgage may suit you best.
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