| With an Intelligent Finance Mortgage you can buy a new home, switch mortgage to generate some capital or even consolidate debts. With your mortgage, savings and current account in one plan we can help get more from your money. This is called offsetting, read on to find out how you could end up paying much less interest over the term of your mortgage.
First of all you could choose to reduce the term of your mortgage.
Offsetting the money in your current account and savings against the same amount of your mortgage means you only pay interest on the remainder. Therefore you are effectively overpaying each month as the interest saved doesn't go toward monthly mortgage payments. This in turn reduces your mortgage balance faster and you can pay off your mortgage earlier than expected.
This shorter term plan would be ideal for people who want to pay off their mortgage early so that you can be mortgage free to enjoy life. This is also a beneficial package if you have an interest only mortgage and you would like to reduce any potential shortfalls.
Secondly you could choose to reduce the monthly repayments of your mortgage.
Again, offsetting the money in your current account/savings and/or an ISA against your mortgage means there is less of a balance showing against your mortgage which lessens the interest on your mortgage. This automatically adjusts each month depending how much money is being offset in your accounts. The more you put in, the less your monthly payment will be. As a result of offsetting you will benefit from lower monthly payments though your mortgage term remains the same.
This lower payment plan would be ideal from people who need to keep payments to a minimum. Perhaps for first time buyers, families or maybe those who need to reduce work hours for retraining or university. Whatever your circumstance changes this could be a viable option for you.
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