Compare First Time Buyer Mortgages
If you've got some savings but you don't want to put it all towards your first mortgage deposit, you could still reduce your interest rate with an offset mortgage. An offset mortgage deal will involve your mortgage lender will link your mortgage loan to your savings account, current account or credit card while keeping them separate to reduce your debt and the interest owed on your loan. For example, if you have £100,000 mortgage and £30,000 savings, you only have to pay interest on £70,000 of the loan.
This type of mortgage is flexible in the way that you can:
- Make overpayments – allow you to pay off your debt in a shorter amount of time than other mortgage deals
- Make underpayments – at times when your savings have been reduced you may pay less than the previous month
- Take payment holidays – in times of need, for example, maternity and paternity leave you may be allowed time off from repaying your mortgage loan.
As a first time buyer, taking out a mortgage loan can be a stressful and daunting prospect but it is important that you find the right mortgage deal for you. An offset mortgage could be the best type of mortgage deal for you if you are:
- A higher rate taxpayer
- Have to pay school fees
- Have a high level of savings
- Have buy to let properties
- Have an irregular income and rely on commission and bonuses
You may wish to utilise our product comparison tables to compare other types of mortgage deals and their various lenders.