People who have built up a cash pile in lockdown are putting their money to work in accounts linking home loans to savings
Their heyday was the late 1990s and early 2000s, but since then they have fallen out of favour. However, offset mortgages appear to be making a comeback, with some brokers reporting increasing demand.
They link your savings to your home loan, so a savings balance is used to reduce – or offset – the interest you pay on your mortgage. And the renewed interest is partly down to one of the financial side-effects of the pandemic: the fact that some consumers have been lucky enough to be able to build up large pots of “lockdown savings”.
