Offset mortgages could help people to make their savings work in their financial interests to reduce their mortgage term, said Kevin Bray, an insight analyst at Defaqto. But he advised homeowners to choose carefully.
"For the right offset mortgage, look beyond the cheapest rate on offer. Look for specific product features that suit your financial needs as these vary enormously,” said Mr. Bray.
Research done by the organization showed that 102 out of 307 available cash Isas offered a three percent rate and compelled customers to fix their savings for three years, charging a penalty for withdrawals.
Recently, the Financial Services Authority found that the total value of outstanding mortgages reached £1,207 billion in Q4 of 2009, and the number of new arrears cases also dropped in each quarter of 2009.