The best offset mortgages are to be found by comparing deals from a number of providers. Offset mortgages allow you to link your outstanding mortgage balance and any other borrowings you might have, such as personal loans or credit cards, with money in current or savings accounts held with the same lender. This offsets the amount in your savings or current accounts against the outstanding balance of your mortgage, so you only pay interest on the difference. For example, if your mortgage is £120,000 and you have savings of £20,000, then you will only pay interest on £100,000 of your borrowings.
Advantages of offset mortgages include:
.    Flexibility – they offer the option to overpay, take a break from your mortgage payments for a set period, or borrow back cash from your mortgage.
.    All your money works for you; every penny in your savings or current accounts helps to pay off your borrowings earlier.
.    By saving interest on your mortgage rather than earning it on the money in your current and savings accounts, there is no tax to pay.
.    Your accounts remain completely separate and you can still access your money just as you normally would.
You do not earn interest on your credit balances under this arrangement, but the amount of interest you are charged is reduced.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE