Lifestyle Mortgage
A lifestyle mortgage allows the borrower to make extra repayments and to reduce, or even skip, payments when necessary.

This flexibility enables you to pay more when your purse is bursting with money, and pay less when you haven't got two pennies to rub together.

Borrowers will normally have to build up a reserve through overpayments before being allowed to underpay or skip payments.

Many flexible mortgages come without any Early Repayment Charge so the borrower is not locked-in to any particular lender.

In addition the interest rate charged is often lower than the usual Standard Variable Rates charged by the other more traditional mortgage lenders.

Offset Mortgage
The main idea of offsetting is that you can combine all your borrowings with all your savings including what is in your current account.

An offset mortgage works by using your savings to cancel out (or offset) part of your mortgage.

This effectively cuts the interest you have to pay and can knock years off your mortgage.

The beauty of the offsetting feature is that you can always have access to your savings if you need them.

However, borrowers should be aware that when using the money held in their savings account to offset their mortgage, they will not receive interest on the credit balance held in that account.