Offset mortgage
Offset mortgages are still a rather new idea in the UK, they basically work by taking advantage of the fact that we generally get less interest for our savings than what we pay for our debts.
The basic idea is that instead of having a separate savings account you actually link it to your mortgage account and the money is used to reduce the balance of your mortgage. Obviously because the interest rate on your mortage is usually higher than the rate you gain from your savings then this can work out very beneficial. For example if you had a savings account which gave you 3% interest then you could potentially earn upto say £30 but if your mortgage rate was 6% interest then you could knock off £60 and therefore making more of your money.
