Put all your money eggs in one basket to save money

An offset mortgage is actually a smart idea: by combining your current account, savings and your mortgage, you could pay significantly less interest on your repayments. It can save you a lot of money, but you'll also lose interest on your savings.

The offset mortgage is a relatively new idea, and all kinds of lenders are getting excited about the concept. Instead of having a current account, a savings account and a mortgage, the bank combines your assets and debts together so if you've got a few thousand quid in the bank, you'll pay less interest on your mortgage.

An offset mortgage can save you an awful lot of money, especially if you're a thrifty type who salts money away. However there are disadvantages too: it's variable rate rather than fixed rate, you won't get interest on your savings, and there's always the temptation to borrow more money instead of paying off what you already owe.