With savers scratching around for a return on their cash many will be looking for alternatives.  

If you are earning next to nothing through cash savings but paying an interest rate of 2.5 per cent on a mortgage then you will save money by paying off your debt first.

Paying down more expensive debt will therefore make sense.  

Offset mortgages are now available at tight margins compared with standard mortgages and give a level of flexibility to cut debt and interest charges without sacrificing the flexibility to draw on the cash.  

That could arguably mean that there has never been a better time for borrowers to consider an offset mortgage.  

More providers currently returning to the offset concept could also help boost the competition and range of deals but advisers will be an important part of growing customer awareness of the product.

This guide will explain the pros and cons of an offset mortgage, other ways to make your client’s money stretch further in a low interest rate environment and who should contemplate committing to this type of home loan.

Supporting material from: Bernard Clarke, communications manager of the Council of Mortgage Lenders; David Hollingworth, associate director of communications at L&C Mortgages; Christine Newell, mortgages technical director at Paradigm Mortgage Services; and Lucy Quinton, marketing executive of Family Building Society.

emma.hughes@ft.com