offset mortgage
Definition
A type of flexible mortgage which calculates the mortgage holder's net balance by subtracting the credit balance from the mortgage balance. By linking a homeowner's credit and debit accounts, such as a personal savings account or even a credit card, to the mortgage the homeowner could see a reduction in interest. For example, a homeowner with a mortgage balance of $400,000 and a credit balance of $50,000 in a savings account would have a net balance of $350,000 ($400,000 - $50,000). The interest would be calculated on the $350,000. An offset mortgage is most likely to be used in the United Kingdom. Also called current account mortgage (CAM).
offset mortgage is in the Banking, Commerce & Finance, Corporate, Commercial, & General Law and Real Estate & Buildings subjects.
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