Consumers are seeking offset mortgages in greater numbers, due in part to the high fees and high interest rates that are prevalent with other loan types. However, consumers are urged to be cautious with offset mortgages and make sure that they understand exactly what they are getting into before they sign on the dotted line. Otherwise, they may end up with an unfavorable offset mortgage that will be hard to get out of. Experts state that it is just better to do your homework ahead of time instead of getting stuck with a loan that you cannot afford several years down the road.
Matthew Hall, head of tax services at Wilkins Kennedy stated, ‘Buyers simply believe prices are too high. They don’t want to commit if they believe that prices will continue to drop in the coming months.”
‘If the government really wants to create more interest and stimulation in the lower end of the property market then they should consider exempting stamp duty on all transactions up to £250,000 coupled with the re-introduction of mortgage interest tax relief for purchases of properties up to that same value,’ he added,
Related reading: Off Set Mortgages
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