Australia has been using a technique called offsetting that has been saving the residents several thousand in during the length of their mortgage. Intelligent Finance released yesterday their ideas on the offsetting process and believes that UK mortgage holders could indeed save just as much as Australia if they were to try offsetting.
It seems that report says the average UK resident could save almost 70,000 pounds on their mortgage if they were to offset. An offset mortgage means that you have an extremely flexible mortgage and you are able to save more money in the process of fixing it to your needs.
Offset mortgages were introduced in 1997 in the UK and in the last ten years have become more popular. Of course many in the UK would like to see that the offset mortgage gain more in its worth in order to help the UK residents save a little money. The Council of Mortgage Lenders has found that 170,000 offset mortgages that equal 23.9 billion pounds were taken out in 2006. This is good for the market and it is about 7% of total mortgages. If more UK residents were to try offset mortgages there may be less default and more to be had in savings by both the bank and UK mortgage holders.