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Borrowers 'should consider offset mortgage deals'
Consumers should think about switching to an offset mortgage deal in the current climate, a leading financial website has suggested.
Moneysupermarket.com has suggested that the combination of inflation and a low base rate means consumers do not have many chances to gain a return on their savings.
It suggested that one potential alternative to savings rates could be to offset mortgages, which in turn would see the loan paid off earlier and the interest accrued being less than normal.
Hannah Mercedes-Skenfield, mortgage channel manager at Moneysupermarket.com, said such deals are becoming increasingly attractive.
She added: "There is an additional benefit for taxpayers, as you don't earn interest on the savings, you won't be taxed on them either. This is even more of a benefit to higher rate taxpayers."
Recent figures published by the Council of Mortgage Lenders revealed that the number of mortgages approved in the UK has fallen dramatically since the end of the stamp duty holiday.