Offset mortgages 'can offer greater flexibility'

An expert has recommended that homeowners choose an offset mortgage rather than using savings to pay off their home loan.

Andrew Montlake, a broker from Cobalt Capital, says that this method would allow consumers to pay off the "home loan quicker" and it offers "greater flexibility".

He told the Independent that by choosing an offset mortgage, homeowners can pay off the debt while also "retaining the ability to tap into considerable savings" if it was needed.

"You''d have complete flexibility and not need to worry about going through the sometimes lengthy process of taking out a further advance should you need the cash in the future," added Mr Montlake.

Offset mortgages deduct the balance of people''s savings from the mortgage, so interest is only paid on the difference.

David Hollingworth, from brokers London & Country, recently told the Independent that savings which are equivalent of "at least five or ten per cent of your mortgage" are needed before considering an offset mortgage.

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