Not all mortgage lenders offer offset mortgages and, when they do, they are more expensive than ordinary mortgages (although not necessarily much more).
It provides the illusion of market rates that are relied upon by everyone from sophisticated derivative traders to ordinary mortgage borrowers, but the rate itself is pure fiction.
On the whole, the middle-classes did not need subprime mortgages to build up capital for their retirement because they qualified for ordinary mortgages.
The principal money may be advanced to the borrower in instalments or in a single, lump-sum advance and thereafter accrues interest like any ordinary mortgage.
The government simply guarantees loans made by ordinary mortgage lenders (descriptions of which appear in subsequent sections) after veterans make their own arrangements for the loans through normal financial circles.
