According to Britannia Building Society the Britannia offset mortgage is simpler than other offset mortgage products. This is because there is no need to transfer all your accounts to Britannia, nor do you need to have your salary paid into a Britannia account. All UK borrowers need for a Britannia offset mortgage is the mortgage and a Britannia savings account.
Britannia also says its Britannia offset mortgage is even better than a flexible mortgage as instead of paying money into a mortgage account that then has to be borrowed back, offset mortgage holders can simply leave that money in a savings account. The savings account that accompanies a Britannia offset mortgage is an instant access savings account with no minimum balance and no limit on withdrawals.
The Britannia offset mortgage comes in two forms, with a package for first time buyers and home movers and another for remortgagers. The Britannia offset mortgage is a lifetime tracker which is priced a few % points above the Bank of England base rate for the life of the mortgage. There are two non-refundable fees with the Britannia offset mortgage - a £100 administration fee and a slightly larger arrangement fee. There is no early repayment charge and no higher lending charge.
Britannia estimates that on the Britannia offset mortgage deal, someone with a £100,000 mortgage and £1,000 in savings who saves £50 a month could save two years and one month on a 25 year mortgage term. The borrower could also save more than £15,000 in interest. The illustration also suggests that after 21 years, the savings account balance would be equal to the amount owed on the mortgage, so the borrower could choose to repay the mortgage four years early.
The Britannia offset mortgage remortgage package is a lifetime tracker which again is priced a few % points above the Bank of England base rate for the life of the mortgage. With the Britannia offset savings mortgage remortgage package the standard valuation and conveyancing are free and there are no administration or arrangement fees. There is no early repayment charge and no higher lending charge.
All Brittania rates are only available direct to the consumer and it is advisable to compare the rates being offered by some of the more mainstream lenders involved in the offset market place.
With Britannia mortgages, if the mortgage is repaid in full, there is a fee payable for discharging the mortgage and a fee for sealing the deeds. Flexible features available with Britannia offset mortgage products include underpayments, payment holidays and additional borrowing, though these must be applied for. However underpayments and payment holidays could increase the mortgage term and/or the total amount payable.
However, please note that The Offset Mortgage Centre cannot advise on or arrange mortgages from Britannia.
Available to first time buyers
Only available direct to a branch
No early redemption penalty period
