| Product type |
Offset Mortgage
|
| Pay Rate |
6.19% |
| APR |
6.7% |
| Expiry Period |
10 years |
| Max LTV |
75% |
| ERC |
4% |
| Arrangement Fee |
£800 |
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An Offset mortgage enables you to use the money in other accounts you hold with the lender – usually current and/or savings accounts - to ‘offset’ the balance of your mortgage. Interest is calculated on the net amount you owe.
Unlike a ’current account mortgage’ all your banking accounts are kept separate, although they have to be kept with the lender who is providing the mortgage to allow them to ‘offset’ the balances.
It is a flexible and efficient way of borrowing as all your credit balances are working to reduce your overall mortgage balance on which interest is paid. You won’t receive credit interest on your savings account, but it is reducing the amount of interest you pay on your mortgage. Offsetting can help you to reduce your mortgage term or monthly payment or both.
The majority of offset mortgages are based on variable rate.
To find out more about this type of mortgage call us on 0845 071 4414