How To Obtain The Best Offset Mortgage

How To Obtain The Best Offset Mortgage

How to​ Obtain the​ Best Offset Mortgage
This article will briefly discuss what an​ offset mortgage is; and how an​ independent mortgage advisor can help you​ buy the​ best offset mortgage.
An offset mortgage links your main current account and/or savings accounts to​ your mortgage .​
Every day or​ month,​ the​ amount owed on​ your mortgage is​ reduced by the​ amount in​ these accounts,​ before the​ interest is​ calculated on​ the​ loan .​
When the​ money in​ your savings/current account increases,​ you​ pay less on​ your mortgage .​
If the​ money in​ your savings/current account decreases,​ you​ pay more on​ your mortgage.
When it​ comes to​ finding the​ best offset mortgage,​ it​ pays to​ have expert advice because there is​ more to​ a​ mortgage deal than meets the​ eye .​
Your mortgage will probably be the​ largest financial commitment in​ your life,​ and it​ pays to​ take time to​ look at​ the​ different options available to​ you.
There are different types of​ offset mortgages available on​ the​ market .​
You could look at​ ‘best buy mortgage tables’ to​ find the​ best offset mortgage,​ but that only gives you​ superficial information .​
It doesn’t show you​ the​ mortgage’s flexibility; i.e .​
the ability to​ underpay,​ take payment holidays,​ or​ overpay,​ or​ what the​ fees and charges are .​
In the​ last couple of​ years,​ fees for mortgages have increased .​
Fees can be in​ excess of​ £1000,​ and several mortgage providers are now charging fees as​ a​ percentage of​ the​ sum being borrowed,​ for example: a​ 2% fee on​ someone borrowing £120,​000 on​ a​ new low two-year fixed rate deal would pay £2,​400 .​
Once fees are taken into account,​ the​ best offset mortgage deal may not be the​ one with the​ lowest interest rate.
Recent research has shown that the​ best offset mortgage is​ not necessarily offered by the​ top 10 biggest mortgage lenders .​
The top 10 mortgage lenders offered only 11% of​ the​ best 250 mortgage deals available on​ the​ market,​ despite the​ top 10 having more than a​ 60% share of​ the​ mortgage market .​
To guide you​ through this myriad amount of​ information available,​ an​ independent mortgage broker will give you​ impartial advice about the​ best offset mortgage,​ as​ they have comprehensive knowledge of​ the​ mortgage market .​
a​ mortgage broker is​ fully authorized by the​ Financial Services Authority (FSA) and they have the​ necessary qualifications to​ advise you.
Your mortgage broker will perform a​ ‘factfind’ to​ learn about your financial situation and circumstances,​ and your wants and needs .​
Your broker will assess your ability to​ repay the​ mortgage,​ your credit history and credit scoring profile .​
Offset mortgages are usually calculated on​ an​ affordability basis and not on​ a​ simple income multiplier,​ which allows people with ad hoc financial income,​ such as​ a​ self-employed person,​ to​ possibly obtain a​ larger mortgage than with a​ standard,​ more traditional mortgage .​
All of​ the​ information you​ provide will help your broker obtain the​ best offset mortgage available for you​ on​ the​ market.
After the​ best offset mortgage has been sourced for you,​ your independent mortgage broker will provide you​ with written details about the​ mortgage,​ which will include:
- How much you​ want to​ borrow
- the​ type of​ offset mortgage you’re interested in
- a​ description of​ the​ mortgage; who the​ lender is​ and the​ interest rate
- Overall cost of​ the​ mortgage including the​ fees
- How much your payment would be if​ the​ interest rates increased
- the​ flexibility of​ your offset mortgage
An independent mortgage adviser will answer any questions you​ have and ensure you​ have all the​ necessary information about the​ mortgage market .​
It is​ worth spending time with them,​ as​ they are there to​ help you​ find the​ best offset mortgage.Resources

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