Accord Offset Mortgage - All you need to know

Accord offset mortgages allow you to have an attractive balance between solid interest rates and flexibility. With a healthy 85% loan to value maximum, you can borrow anywhere between £30,000 and £750,000 (depending on the specific product) the mortgage is completely portable to another property if necessary.

Not only are there no penalties for overpayments, you are also allowed payment holidays (periods where you don't make repayments) provided that you have made enough overpayments previously. This gives you the benefit of being able to invest extra income when you can and cutting back on payments if you need to.

Accord doesn't require you to open an account or take out a credit card in order to entitle you to the rates of the offset mortgage. Neither are salary credits or a minimum deposit required to be paid into the savings account.

You have the option to pay into a postal savings account where withdrawals are requested by posting a signed withdrawal slip and can be sent to the saver by cheque, or direct to a nominated bank account. No interest is earned on the savings, but the interest charged to the Accord borrower on the mortgage is calculated based on the difference between the offset mortgage balance and all the offset savings.

Credits can be sent by cheque or direct to the account via BACS. Up to three savings accounts can be linked to the offset mortgage. The maximum balance allowed in these offset savings accounts in total is 100% of the offset mortgage balance.

In order to apply for Accord offset mortgages, Employed applicants must provide a P60 and payslips from the last month. Applicants who are self employed must provide 3 years of accounts or 2 years of accounts and a projection. These applicants have to have been self employed for at least two years.

Accord still considers applicants who have poor credit scores or financial difficulties. If you have been discharged from bankruptcy, the discharge must be from over 36 months ago and you must provide proof of it. Proof of income is less vital for loan to value mortgages of less than 75%.

Applicants do not have to pay UK tax payers and there is a maximum of 4 applicants for an offset mortgage. Both fixed & tracker rates are available on these products.

50% of regular bonus and overtime is taken into account for offset lending purposes.

Benefits such as disabled persons tax credit, disability living allowance and carers allowance will be considered on a case by case basis.

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Pro's

No penalties for overpayment

Payment holidays allowed

Features

No account or credit card sign up needed to receive offset rates

Offset Mortgage Centre

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