Research firm Defaqto argues that the combination of flexibility, tax advantages and low interest rates could mean now is the time for higher rate taxpayers to consider an offset mortgage.

David Black from Defaqto said: “Offset mortgages can work well for higher rate taxpayers who have a mortgage and a reasonable level of savings. Offset mortgages effectively offer tax free interest on savings at the same rate as the mortgage. The savings interest is offset against the mortgage interest payable rather than actually being received.””