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Abacus-money Jargon

O

Offset Mortgages

This mortgage product rewards generally higher rate taxpayers, enabling them to reduce the amount paid in interest on their mortgage by foregoing the interest they would earn on savings. Offset mortgages allow the mortgage lender to take into consideration your savings when calculating how much you owe each month. As a rule of thumb, it would be advisable that at least 20% of your mortgage balance was held in savings for this to be an effective mortgage.

Ombudsman

The independent body that has responsibility for investigating complaints about member institutions. In relation to mortgages, this will either be the Banking Ombudsman, the Building Societies Ombudsman or the Financial Ombudsman Service.

Overpayments

When you're allowed to pay more than your normal monthly payment, so you can pay off your mortgage earlier if you want and save on interest charges.