Offset Mortgages, offer the chance for homeowners to combine their current accounts with their mortgage balance. The main advantage of an offset mortgage is that if you have savings in your current account, your mortgage balance is automatically reduced leading to lower mortgage payments. The savings of an offset mortgage are magnified for a high tax rate payer, as they do not pay any tax on interest payments from savings.
Some of the best current Offset mortgage deals in the UK include:
Halifax Offset Mortgages
Halifax offer offset mortgages through their subdivision Intelligent Finance
- Intelligent Finance offer a Tracker mortgage for 85% of loan to value at 0.34% above the Bank of England’s base rate. High arrangement fee of £1999. Overall cost for comparison 7.5%
Royal Bank of Scotland
- RBS offset mortgages offer a flexible variable offset mortgage of 6.45%. Arrangement fee only £399. Overall cost for Comparison 6.8%. Max loan to value 95%
- 100% Offset Mortgage. Overall cost for comparison 7.5%. No early repayment fee. Arrangement fee £399.
- RBS Offset mortgages
Woolwich Offset Mortgages
- Barclays Bank Base Rate + 0.69%, currently 6.19%, for the term of the mortgage. The overall cost for comparison is 6.5% AP. Application fee £599. Woolwich offset mortgages
2 comments ↓
Offset mortgages can be very effective with a drawdown facility, so the borrower will only pay interest on the money they use only when they need to borrow. The effect will greatly reduce the total interest paid.
I find if difficult to understand all the offers and which is best. So I find that if they are all listed in front of me it is much better to see what is going on. I found that the site http://www.simplyfinance.co.uk could do that well.
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