Ms Newell gives Virgin Money as an example of a lender who offers a flexible deal but not an offset.
At the time this guide was published, Virgin Money allows a client to withdraw their overpayments or to use up these overpayments made by taking a payment holiday of up to three months.
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Ms Newell says: “This could also be good for self-employed applicants who want to take a payment holiday to pay a tax bill but again do not have the benefit of a lump sum to offset.”
That approach would have the same impact in terms of cutting the interest bill and repaying the mortgage more quickly and could mean that a lower mortgage rate is achievable.
emma.hughes@ft.com
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