The offset option Rosemary Gallagher weighs up the pros and cons of mortgages that allow you to set your savings against your home loan

From: The Sunday Telegraph London | Date: February 15, 2004| Author: | Copyright information

IF THE HYPE in glossy advertisements is to be believed, offset mortgages could mean the end of your financial woes.

Offsets are marketed as the most tax-efficient use of your savings which, at the same time, make it possible to pay off your mortgage in as little as 10 years, rather than the usual 25.

Their unique selling point is that they allow you to offset money in savings and current accounts against your debt, including mortgages, personal loans and credit card balances.

This means that borrowers pay interest only on the amount left after savings have been taken into account. Because the ...

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