Offset or all-in-one mortgage – whats the difference?
Offset mortgages operate each bit of your account as a separate pot – a mortgage pot, a current account pot, a credit card pot and, in the case of the Woolwich Open Plan OffSet mortgage, up to 12 savings pots. This is meant to make it much easier for borrowers to see what is happening their finances, whether they are paying off his mortgage according to plan or whether they have become overdrawn on their current account that particular month. But while the Woolwich charges the same rate for each different part of the account, Intelligent Finance charges different amounts for each service, which can make comparisons difficult. IF customers also need to watch out for unauthorised overdraft charges (of £25) each time they exceed the agreed limit on their cheque account. However, this is an unsecured overdraft, which will not put the mortgage at risk if the borrower runs into problems with repayments. All-in-one or current account loans combine all the facilities in one account, charged at
