People with an offset mortgage could save up to £22,000 by switching to Abbey’s offset product, the building society has said.
Abbey says that its savings offset mortgage called the Flexible Plus could help customers pay off their mortgage three and a half years early, even if they only overpay by £3 a day.
It found that the average overpayment made by customers was £500 a month, peaking at £560 in November and bottoming out at £215 in December.
Lal Tawney, Abbey’s Head of Mortgage Marketing, said: “Our offset customers benefit in many ways. Not only will they pay a competitive rate of interest for the life of the mortgage without having to switch to a new deal, but any overpayments will reduce the interest charged as well as cutting the mortgage term.”
The product would be the best mortgage for customers with irregular income, such as commission-based work or the self-employed. They can vary the amount of mortgage payment each month, underpaying and overpaying as circumstances allow.
The mortgage rate of the product tracks the Bank of England base rate.
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