Offset Mortgage Are The Savings Worth It? - Hot Topics Q&A

Q. I am a 36 year old registrar, soon to become a Consultant. We are buying a family home to house the growing brood. I've met with a few financial advisers and have to admit that I am confused as to whether a cheap 2 year discount mortgage at 5.5% is better than one of these offset products which seem to have rates slightly higher.

Which is best?  

A. We do not blame you for being confused! The answer of course is in the detail. Other information you have given us shows that you will start to earn privately quite quickly, and will want to bring down debt as soon as possible.

This definitely points towards an offset mortgage, as "parking" spare/tax monies as well as using a current account will save much more than you would if you had a seperate savings account.

There are online calculators available help you.

Try http://if.com/