Offset mortgages 'provide the most savings'

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Offset mortgages 'provide the most savings'

Wed 5th May 2010

Consumers who have an offset mortgage may find that they have more money in their pocket than those who take out an Isa, it has been reported.

Research from First Direct found that those who put their money into an offset product over the past ten years have on average been better off than those who invested into an Isa.

Going on the rates that were offered by the two products, the company found that there could have been as much as £3,306 difference between the two sums.

Richard Tolchard, senior mortgage product manager at First Direct, commented: "For savers who hold a mortgage, this analysis shows that cash savings work harder offsetting against a mortgage than they do within a tax efficient Isa."

For those who are looking to invest in a bond, First Direct recently launched a Fixed Rate Savings product that offers a rate of 2.75 per cent AER interest.

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