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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.

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According to Lloyds TSB, consumers are preparing for interest rates to rise next year, despite market speculation that rates could drop below one per cent.

The bank’s latest Consumer Barometer of 2,000 consumers found that 40% of consumers believed interest rates could be higher next year.

This means people are expecting mortgage bills to rise, for debts to rise and will be planning to save rather than spend.

If you are one of these 40%, the best option for 2009 has to be an offset mortgage. Although offset could be at the mercy of rate rises to an extent, ultimately you are in control of the loan.

While people on fixed and tracker rates pray for rate drops, as long as you are saving more against your mortgage, the lower your rate will be. This survey proves that there is a lot of doubt as to what the year will look like, but with an offset there is no doubt.

2008 has been a tough year for many and one thing is agreed – 2009 will not be much easier. So get saving and get your money working for you regardless. If rates rise and you keep saving, its good new for you – and if rates drop then its even better news.

If you want control of your financial situation in 2009, you need offset Mortgages.

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

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Mortgage interest rates are on the up, there is no doubt about that. Thanks to tightening credit limits mortgage lenders have had to resort to putting up rates by several percentage points. Which in real terms means a big hike in your monthly mortgage bill and with rising energy, food and fuel costs, mortgage hikes are the last things any homeowner wants. But what about the interest rates on flexible mortgages? Aren’t they any different, because these are flexible deals, shouldnt they be immune to mortgage rate changes? Or are they different, will interest rates on flexible mortgages be hit harder than other deals?

Find out more on Interest Rates on Flexible Mortgages