April 20, 2010

Use Offset Mortgage Loans To Build Up Your Savings Pots And Trim Down Your Raiding

New research from Birmingham Midshires has revealed Brits have almost doubled the amount they are saving on a quarterly basis compared to this time last year – but even more Brits could be doing this with the help of a good offset mortgage.

In the three months to April 2010, Britons saved an average of £1,031, compared with £554 this time last year and £776 during the three months to January 2010. And BM says only two in five British adults admit to raiding their savings during the same period – it says the average raiding amount has reduced to £1,499 from £1,724.

With an offset mortgage loan, the incentive to save rather than spend is huge – if you spend from your savings pots you have a bigger mortgage repayment rate, if you save more that rate goes down. It’s simple, but it’s a great way to help you save more each month.

John Bianco, senior manager at BM Savings says: “It is reassuring to see that people have increased the amount they save for the second quarter in a row, as good saving habits are important to ensure you can plan ahead financially.”

Talk to a mortgage broker about offset mortgages. They will help you search the whole UK offset mortgage market and will show you the loans that would benefit you and make sure you save more than you raid.

SOURCE: BM, 16/04/10

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