» Read the full story

More than four million home-owners are playing a waiting game, watching the fluctuating property market with an eagle eye so they can cash in on cheaper home-ownership before prices start to rise.

According to research from First Direct, UK homeowners waiting for the right moment to ‘trade up’ their houses are now sitting on a savings pot of £20.2bn, which is ready to be ploughed into the housing market when the time is right – the average Brit expects that time could be as soon as October 2010.

But the waiting game has an emotional impact on the nation – a quarter feel lucky to be able to take advantage of a falling market and snap up houses while prices are low. Close to one in five are thrilled at the prospect of nabbing a bargain. However, for 20% of the nation, the waiting game is forcing them to postpone major life decisions such as marriage and children – and 12%  feel that they will never make it on to the property ladder with prices as they stand.

A spokesman for First Direct says: “If property is your preferred investment, it’s worth existing home-owners investigating offset mortgages as a savings option while they wait for the right time to invest.  With savings accounts paying such low rates of interest at the moment, offsets are looking particularly attractive.

“Swapping to an offset mortgage could cut down the length of a £100,000 25 year mortgage by almost three years and save £18,322 in interest payments over the lifetime of the mortgage.”

Sitting on a fortune may not be the right choice. Taking out an offset mortgage now, either on your existing property or on a new home, will start saving you money immediately – so even if house prices fall a bit more, you know you are making savings regardless. Then when the market returns later this year then you will be making a profit as your house price inflates alongside the generous monthly savings an offset mortgage can bring.

SOURCE: First Direct, 16/04/09

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