Recently the term offset mortgages has become quite popular in the mortgage market because of several conveniences it provides to borrowers in repaying their loan. It is also considered one of the best mortgages out there. The way an offset mortgage works is that it uses the savings in your bank account to pay off the mortgage but not directly. Instead of paying the interest on the mortgage, you forfeit the interest on your savings and thereby the monthly payments are readjusted.
Usually the bank or the lender has this option and you only need to apply for it. The difference between your mortgage and your savings is taken and the monthly payments are readjusted based on that. Moreover, since you do not get the interest from your savings, you save on tax as well.
There are several variants in offset mortgages offered by banks. The choice you will have to make is between reduced monthly payments or reduced time. Just remember that if you have a large savings balance and your mortgage can be cleared off before the stipulated time period, then you might incur on an extra charge. Your savings account works normally even after the offset mortgage but the minimum offset amount must be available in the account at all times.