No matter how small the investment, committing to regular saving over the long term can build a sizeable pot – and with offset, that small pot can help reduce outgoings each month.

Rob Fisher, head of UK personal investments at Fidelity International says: “A monthly investment plan can be a good way to maintain a long-term investment strategy and is a useful way of being disciplined about saving for the future. And you may be surprised at how much even small amounts can grow over a number of years.”

Because many offset loans calculate interest rates daily, you can be sure that every penny you put into your savings pots will go towards a cheaper mortgage rate at the end of the month – which in turn saves you even more money. It might be just £20 or £50 a week, but after a year you could have saved thousands of pounds – all thanks to offset.
 
Of course, the key to successful saving is dedication so learning to not spend what you have put aside is as important as saving – with an offset, the money saved on your mortgage rate each month is incentive enough to not spend.

Talk to a mortgage adviser about how your little investments can make big savings. In this low rate environment and with tax hikes on their way, offset is the single best way to make the most of your money, every month. So ask for an offset and begin planning your regular, manageable contributions.

SOURCE: Fidelity, 12/04/10

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