Why You Should Compare Offset Mortgage With Fixed Rate Deals

Homeowners want to be sure they're getting the best deal when they are taking a home loan and one good way to do that is to compare offset mortgage deals to standard mortgages available in the market. And don't worry if you don't want to take the time to compare offset mortgage packages - we've done it for you. A word of warning, though. Make sure you check the latest rates when you're ready to compare offset mortgage deals for yourself. Rates can change quickly, so the best deals can alter without warning.

The Offset Mortgage Centre visited a well known financial comparison site to compare offset mortgage and fixed rate mortgages. To our surprise, four of the six best fixed rate deals on the market came from offset mortgage providers. The measure we used to compare offset mortgage and other deals was the total cost of borrowing £90,000 over 25 years, including fees. We looked for deals that allowed flexibility and did not have an extended tie-in period.

Offset Mortgage And Fixed Rate Deals

Here's what we found when we started to compare offset mortgage lenders with other lenders. The top fixed rate deal is not an offset mortgage. It comes from Scottish Widows, a moderatly new entrant to the mortgage market. The fixed rate is 5.99 per cent untill Febuary 2010. Borrowers repay £2.10 for every pound borrowed and the total cost of borrowing is £191.231.

The second fixed rate deal when we compare offset mortgage deals is an offset mortgage from Leeds Building Society. The fixed rate is 6.29 per cent until 2010. Borrowers repay £2.04 for every pound borrowed and the total cost of borrowing is £183,375.

The third fixed rate deal when we compare offset mortgage lenders is an offset mortgage from Norwich and Peterborough. The fixed rate is 5.98 per cent for ten years. Borrowers repay £1.99 for every pound borrowed and the total cost of borrowing is £179,905.

The fourth fixed rate deal when we compare offset mortgage providers is another offset mortgage from Accord. The fixed rate is 6.29 per cent until 2010. Borrowers repay £2.18 for every pound borrowed and the total cost of borrowing is £197,951. The fifth fixed rate deal when we compare offset mortgage providers is yet another offset mortgage from Accord. The fixed rate is 6.49 per cent until end of 2010. Borrowers repay £2.19 for every pound borrowed and the total cost of borrowing is £198,484.

The final fixed rate deal when we compare offset mortgage providers is another non-offset mortgage from Standard Life. The fixed rate is 6.39 per cent until 2010. Borrowers repay £2.15 for every pound borrowed and the total cost of borrowing is £195,040*.

What these examples show is that now offset mortgages compare well to standard fixed rate mortgages. So when it's time to compare offset mortgages should certainly be given a long look.

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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 15/1/08.