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Offset Mortgages Call Now 0117 313 7780

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparisonMax LTVProduct feeMonthly cost Enquire
Initial rate: 1.19%
Rate type: Fixed Nov-2019
Monthly cost: £389.37 per month
Max LTV: 60%
Product fee: £1423.00
Overall cost for comparison: 3.5% APRC
NatWest logo 1.19% Fixed Nov-2019 3.5% APRC 60% £1423.00 £389.37 per month get quotes Call direct0800 158 2934
Initial rate: 1.19%
Rate type: Fixed Nov-2019
Monthly cost: £389.49 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.5% APRC
Royal Bank Of Scotland logo 1.19% Fixed Nov-2019 3.5% APRC 60% £1273.00 £389.49 per month get quotes Call direct0800 096 7447
Initial rate: 1.19%
Rate type: Fixed Nov-2019
Monthly cost: £389.49 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.5% APRC
Royal Bank Of Scotland logo 1.19% Fixed Nov-2019 3.5% APRC 60% £1273.00 £389.49 per month get quotes Call direct0800 096 7447
Initial rate: 1.19%
Rate type: Fixed Nov-2019
Monthly cost: £389.37 per month
Max LTV: 60%
Product fee: £1273.00
Overall cost for comparison: 3.5% APRC
NatWest logo 1.19% Fixed Nov-2019 3.5% APRC 60% £1273.00 £389.37 per month get quotes Call direct0800 158 2934
Initial rate: 1.24%
Rate type: Fixed Nov-2019
Monthly cost: £391.69 per month
Max LTV: 70%
Product fee: £1273.00
Overall cost for comparison: 3.5% APRC
NatWest logo 1.24% Fixed Nov-2019 3.5% APRC 70% £1273.00 £391.69 per month get quotes Call direct0800 158 2934
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Representative Example:

A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.

 

The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).

 

In this example the overall cost for comparison is 3.7% APRC representative.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Offset mortgages

Our Independent Mortgage Service

Why choose us?

Fair Mortgages can provide you with a first class service if you are looking for a mortgage - If you are currently have a mortgage on a deal coming to an end and you are looking to remortgage or you wish to buy a new property contact us to help you get the best deal possible. 

Special features of what we offer include:

  • Whole of market broker - we work as an intermediary and work with over 60 UK lenders
  • Great Rates - Access to leading rates including offset deals
  • Market Exclusives - Access to mortgage deals not available on high street
  • Our  Expertise - Expert help whether you are a first time buyer or experienced full time landlord
  • Credit Issues? - We have lenders who will take into account previous defaults and missed payments 
  • Experienced? - Have a complex buy to let or have a portfolio of 5+ properties? - speak to us

To investigate your mortgage options call our specialist team on 0117  313 7780 or fill in our call back form. 

offset mortgages

Offset Mortgages

An offset mortgage involves linking a bank account – usually a savings account or current account – to your mortgage, in order to reduce the cost of monthly mortgage payments as well as reducing the time it takes to pay off the mortgage. Linking your savings or current account to your mortgage could save you thousands of pounds in mortgage interest, as well as potentially reducing your mortgage term, meaning you will be mortgage-free sooner. You can still access your savings when you need to – and because savings don’t earn interest while they are being used to reduce your mortgage balance, you won’t need to pay any tax on them.

To compare a wide range of offset mortgage deals with other those of other leading providers, you can use our FRRE online mortgage calculator – just fill out one straightforward form to see a range of mortgage deals tailored to suit your personal requirements

How does an offset mortgage work?

Although there are slight variations between providers, most offset mortgages work in a similar way. You will usually set up an offset savings account with the mortgage provider at the same time as taking out the mortgage. These accounts stay separate, so you can access your savings if you need to. However, you only have to pay interest on the difference between the amount in your savings and the amount of your mortgage. This means that the more money you put into your offset savings account, the less interest you have to pay on your mortgage.

Potential advantages of an offset mortgage

  • Pay off your mortgage faster – you could pay off your mortgage more quickly with an offset mortgage deal by linking it to your savings or other accounts.
  • Save on mortgage interest – you could reduce mortgage interest by linking other accounts. Only pay interest on the difference between your mortgage balance minus your combined savings and current account balances.
  • Flexibility with repayments - many offset mortgage lenders will allow you to make regular or lump sum overpayments

Potential disadvantages of an offset mortgage

  • Higher interest rates – Offset mortgages often come with higher interest rates attached than other kinds of mortgage such as base rate tracker mortgages and fixed rate mortgages. Offset mortgage interest rates also tend to be variable, which means that monthly payments can vary.
  • The need for substantial savings – In order for an offset mortgage to be worthwhile, you will need to have a reasonable amount of savings in relation to the total value of the mortgage, otherwise any saving made will be negligible.

An offset mortgage could suit you if:

You want to retain access to your savings – an offset mortgage allows you to make use of your savings while still retaining access to them.

You are self employed – of you have an irregular income, an offset mortgage could allow you greater flexibility that some other types of mortgage.

You are a higher rate taxpayer – an offset mortgage allows you to use your savings to reduce your mortgage payments, without having to pay any income tax on the savings used.

To find the best offset mortgage deals call our mortgage team.

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