3 Year Offset Mortgages

For many, buying an offset mortgage is a great option and could also be suitable for you if:

 

  • You have savings
  • You are self employed
  • You have a cash ISA


By definition, an offset mortgage is one where you use money from your savings and/or your current account to make your monthly repayments. You will only be expected to pay the interest on the difference between your mortgage costs and the amount in your current and savings account.


It helps to compare mortgage deals before making a decision as there are so many different policies out there.
Offset mortgages deals can be flexible, meaning that you can manage your finances how and when it suits you.

Offset Mortgage Deals
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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 YOUR MORTGAGE.

Some of the potential pros for this type of 3 year offset mortgage deals include:

 

  • You do not have to pay tax on your savings account
  • You are able to make overpayments and repay your debt in a shorter space of time
  • You can make underpayments if you are short of money one month
  • You are able to take payment holidays
  • Reduce payments
  • Pay off your mortgage quicker


A 3 year offset mortgage could benefit you if you have a significant amount of savings available to make some of your monthly mortgage repayments. Before you enter into a 3 year offset mortgage contract you will need to ensure that you can keep up with your repayments and that you have enough savings to contribute monthly.


Because there are so many different 3 year offset mortgage deals, we recommend that you shop around and compare mortgage prices and policies before deciding on one in particular. This will help you to find a mortgage that is most suited to you.


See our comparison table below for a look at some of the 3 year offset mortgage offers that are available.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker