If you are sick of hearing about banks making profits, offering bonuses and making huge profits on their loans then switch to a mortgage where your money works for you, not them.

With a regular savings account the banks and building societies are only offering fractions of a percent in interest – some as little as 0.1%. That means if you put £20,000 into one of those savings account you may only earn £20 in a year. Of course, the bank or building society benefits from your money through additional lending and better capital levels – savings accounts are helping the lenders more than they are helping the savers right now in this low rate environment.

So move your savings into an offset mortgage. Because with an offset, your money sits alongside your mortgage loan and reduces your rate. You do not earn interest, you simply reduce interest on your loan.

So with a £100,000 offset mortgage and £20,000 in savings you only have to pay the interest on £80,000 – meaning you can save a fortune over the years, much more than £20 anyway.

It makes your money work for you, not for the lender. It improves your credit score and it can reduce the term of your mortgage. In fact, offset mortgages are this country’s best kept secret – nothing else will save you as much money during a recession as an offset mortgage.

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