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Offset Mortgages

The Offset mortgage allows you to link other accounts to your mortgage for the purpose of offsetting the balance of those accounts against your mortgage balance before interest is calculated. Therefore, reducing the amount of interest charged on your mortgage.

Advantages:
By reducing the interest charged, you are effectively overpaying your mortgage and will therefore pay it off quicker.

Dis-advantages:
Generally the interest rates are higher and therefore your offset accounts need to have a healthy balance in them to benefit from this arrangement.