offset
remortgage
An Offset remortgage is one which allows the
borrower to
keep
balances
(such as
mortgage
debt,
savings
account and
current
account) in
separate
accounts,
but, for the
purposes of
interest
calculation,
all balances
are
aggregated.
(Different
lenders will
have
slightly
different
approaches.)Money
in savings
or current
accounts is
set against
the mortgage
balance and
interest is
only charged
on the
outstanding
amount,
meaning
interest
payments are
reduced.
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