So you want to reduce the value of your mortgage to leave yourself with lower monthly repayments? Are you subject to early repayment charges which prevent you from doing anything of the sorts? You want an offset mortgage to lessen the burden of those costly interest repayments and save thousands if not tens of thousands on the total repayable on your property.

But like every other financial product it can be time consuming and confusing to find the best offset mortgage out there for your circumstances. You need help and you need it fast if you are to get a great offset mortgage deal before they all dissapear thanks to the current credit crunch.

An offset mortgage is a way to combine your mortgage with another balance, normally a current account but sometimes a savings account. You pay interest on the remaining value of your mortgage but only after you have subtracted the value of your current account balance.

For example:

If you owe £200,000 on your mortgage but have £25,000 in your current account then you would only pay interest on the £175,000 that is left in credit. This means you pay less interest over the life of an offset mortgage than you would a normal mortgage.

The marketplace is not exactly full of offset mortgage deals at the moment due to the liquidity crisis that banks are facing but believe it or not offset mortgages are probably the most resilient to the toughening market. Many offset mortgages stipulate that you should keep a certain level of balance in the attached account and by doing this they are limiting the risk of repossession which is in the interest of the lender.

The best way to find the right offest mortgage for you is to contact a mortgage broker who will have all the latest deals at his fingertips. They'll be able to look at your circumstances and give advice on whether an offset mortgage is right for you and help you find the right one for you.

For the extra flexibility that an offset mortgage will give you there will often be a slightly higher typical rate to pay. There also likely to be fewer fixed rates on offers and not as many interest only deals so these mortgages are really best suited to those who are likely to be able to put large lump sums in the account regularly.

It may sound right for first time buyers too thanks to the flexibility and the fact that offset mortgages are often lent on affordability terms rather than an income multiplier which means they can borrow more than normal if they can show it is within their ability to pay into the account. But at the same time with very little savings it is normally less attractive than the typical first time buyer discount mortgage which allows them significantly lower repayments in the first couple of years.