MORE ABOUT OFFSETTING MORTGAGES

Offsetting - gives you the option to link your mortgage to your savings and/or current account balances and instead of receiving interest on your savings and/or current account balances, you pay none on the equivalent amount of your mortgage.

Most offset mortgages offer the following -

• Mortgage payment options - If you select to minimise interest paid on your mortgage, you can choose between 3 ways of receiving the benefit of offsetting, and swap between them at any time. You can choose between Shorter Term, Lower Payments and Reduced Debt
• Unlimited offset - There is no restriction on how much money you can use to offset against your mortgage.
• Overpayments - flexibility to make overpayments. Bear in mind that if you repay your mortgage in full within a special rate period, early repayment charges may apply
• Additional borrowing - you can release money tied up in your home, based on your income and house value.
• Payment holidays - you may be able to take payment holidays each year to help with the more expensive times like Christmas.
• Interest calculated on the basis of daily balances - to give you a consistently good deal.
• Portable - Most of these products allow you to carry forward the special rate to a mortgage on a new property for the remainder of the special rate period.
• Choose your repayment type - repayment, interest-only, or a combination of both.

An offset mortgage may be an option to consider, especially if you have your own business or a reasonable amount of savings that would ordinarily be left in a conventional savings account. By offsetting these monies, you may find that the equivalent interest rate that you pay on this type of mortgage, may be considerably lower.

Contact us on 01580 243 293 for more information.