The Bank of England has dropped interest rates yet again, to just 1% – which means the argument for offset has never been more obvious.

Savings rates will be hit hard by this decision – with base rate at just 1%, many savings accounts will essentially be paying out nothing. Banks and building societies cannot afford to offer great rates when they themselves will only make 1% from your money.

But mortgage rates are only going to improve. Because the lenders can buy mortgage rates for so much cheaper, they can afford to make much more affordable loans – including offset loans. Also, anyone on an existing variable deal or a tracker loan will see their rates fall in line with this week’s decision.

So it’s win-win for offset, yet again. If you have chosen offset to make the most of your money, not only could you see your rate go down thanks to the base rate drop, but you are also saving a lot more than people using conventional savings accounts.

It is crucial to make the most out of your money in a recession, so offset is a must for anyone who can get one. Lowering rates, combined with the potential for even lower rates through investing, makes offset mortgages the number one recession-busting savings vehicles out there. Talk to an adviser right away about getting hold of an offset and working your money harder than it ever could in a savings account.

To stay abreast of current trends, news and comment on offseting mortgages visit the Offset Mortgage Blog.