The Cheapest Offset Mortgage For Next Time Buyers

The decision about which is the cheapest offset mortgage may depend on many factors. In fact, the cheapest offset mortgage is hardly ever just about the interest rate, though this is often the headline that offset mortgage lenders use to pitch a particular offset mortgage package to home buyers or people looking to remortgage. An important consideration when choosing the cheapest offset mortgage is the period of time that you are intending to keep the mortgage. Some people change mortgages in as little as two years and many UK consumers move home four or five times within their lives.

With this in mind, we've looked at the cheapest offset mortgage deals on a well known mortgage sourcing system known as Trigold – well known and used by mortgage professionals. The decision on the cheapest offset mortgage deals is based on a remortgage client looking to refinance a property worth 180k with a 135k mortgage (75% loan to value) on a repayment mortgage over 25 years. Here are some of the cheapest offset mortgage packages available for these circumstances based on the published monthly payments and not taking into account any lenders fees – For a true analysis we suggest you contact us now as lenders rates and fees are changing on a weekly basis.

Cheapest Offset Mortgage Lenders

There are 89 cheapest offset mortgage products being offered by the lenders on Trigold with rates starting as low as 5.74%.One of the cheapest offset mortgage lenders is Leeds Building Society. The building society's fixed term rate which is currently 5.74% until 31/05/2011. The monthly cost of the first of our cheapest offset mortgage deals is £848 per month. This offset mortgage offers competitive lenders fees and comes with an APR of 6.4% and lending up to 80% loan to value.

Intelligant Finance is offering the 2nd cheapest offset mortgage deals in our round up. The fixed rate of 5.79% until 01/05/2010 comes with slightly higher lender fees then that of Leeds Building society although lending will go as high as 90% LTV. The monthly cost for this deal is £852 per month and Intelligent Finance will offer free legal and a refundable mortgage valuation fee to help keep other costs down to a minimum. The APR on this deal is 7.1%

The Woolwich are showing as our 3rd cheapest offset mortgage lender. The portable tracker deal is 0.69% above the Bank base rate and is good for the term of the mortgage. It allows overpayments and incentives include free legals and low early repayment charges apply in the first 3 years of 1%. No higher leading charge with 80% loan to value. The monthly cost of this deal is £864 and the deal comes in with an APR of 6.2%.

Our fourth lender, Norwich & Peterborough comes in with a monthly cost £864 per month also. This is also a tracker rate for the term of the mortgage, the same as the Woolwich (above). As the 4th cheapest offset mortgage N&P will offer lending up to 90% loan to value with an APR of 6.2%. Lenders fees on this deal are priced at a very competitive £499 arrangement fee with no upfront costs. This deal also comes with incentives such as free legals and no valuation fee.*

Remember that today's cheapest offset mortgage deals may not be tomorrow's, so use this information as a guide to the type of mortgage offset package that might be available.

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© 2007 and 2008 Offset Mortgage Centre | Terms and Conditions | Privacy Statement | We don't charge a fee for admistration of an offset mortgage. The Offset Mortgage Centre is the trading name of The Mortgage Broker Ltd, (a whole of market mortgage broker), which is an appointed representative of Home of Choice Limited, which is authorised and regulated by the Financial Services Authority | Your home may be repossessed if you do not keep up repayments on your mortgage. *Source – Trigold sourcing system 17/03/08.