Flexible mortgages of this type work best for people who are steady savers and who will make regular payments, only using the flexibility when they really need it. Couples who put both their salaries into the account will also make great savings. Some people have even asked their parents to put their savings in the account for a short time, so they pay even less in interest and make real inroads into repaying their flexible mortgage.
With flexible mortgages, self-discipline is essential. For example, some lenders encourage borrowers to roll all their debts into the offset mortgage account, effectively consolidating their debts. However, this turns a short-term debt into a long-term one, so think carefully before taking this step. The main thing for borrowers to remember is that although the mortgage is flexible, they will need to pay it off before they retire, so taking frequent advantage of the borrowing limit may make it difficult to reach that goal.
With flexible mortgages, self-discipline is essential. For example, some lenders encourage borrowers to roll all their debts into the offset mortgage account, effectively consolidating their debts. However, this turns a short-term debt into a long-term one, so think carefully before taking this step. The main thing for borrowers to remember is that although the mortgage is flexible, they will need to pay it off before they retire, so taking frequent advantage of the borrowing limit may make it difficult to reach that goal.
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