Egg Flexible Mortgages Are They All They Are Cracked Up To Be?
Egg Mortgages offers two mortgage schemes which allow offsetting. These are Egg flexible mortgages and Egg fixed rate mortgages. To take advantage of either of these Egg Mortgages schemes, borrowers will need to open an Egg savings account (even if they already have one), which will not earn interest. For most products from Egg Mortgages the minimum loan is £26,000 with the maximum set at 95 per cent loan to value. The only exception is the Egg flexible mortgage, where the minimum loan amount is £10,000. All mortgages have free valuations.
The interest rate on the Egg flexible mortgage tracks the Bank of England base rate. These rates are usually set at a specific % rate over and above the base rate for the term of the mortgage. Egg will only deal with consumers directly so we are unable to provide a constant update of their current rates, products and charges and we would suggest that if you are interested in any Of Egg mortgages that you contact them directly for their most up to date products and then call us to make a comparison against the mainstream and high street lenders for you. This comparison is free of charge and will ensure that you get the best deal based on your circumstances.
Egg Flexible Mortgage Features
Key features of the Egg flexible mortgage include:
- no limits on overpayment with the Egg flexible mortgage, as long as it is more than £500
- daily calculation of interest
- withdrawal of overpayments subject to a £250 minimum
- repayment of 10 per cent per year during any discount period
- unlimited repayment after any discount period
- no higher lending charge
- choice of repayment dates
- the Egg flexible mortgage is portable
The fees which apply to both an Egg flexible mortgage and an Egg fixed rate mortgage consist of a valuation fee, a one off fee, a money transfer fee and a mortgage release fee if you move to another lender.
Egg Fixed Rate Mortgage Features
Key features of the Egg fixed rate mortgage include:
- early repayment charges for the Egg fixed rate mortgage are usually on a sliding scale, again, these specific payments should be provided directly by Egg as are likely to change
- no limits on overpayment with the Egg fixed rate mortgage, as long as it is more than £500
- daily calculation of interest
- choice of interest only, repayment or mixed
- withdrawal of overpayments subject to a £250 minimum
- repayment of 10 per cent per year during any discount period
- unlimited repayment after any discount period
- no higher lending charge
- choice of repayment dates
- the Egg fixed rate mortgage is portable
Both the Egg flexible mortgage and the Egg fixed rate mortgage allow payment breaks of up to six months in a five year period once six consecutive monthly payments have been made. However underpayments and payment holidays could increase the mortgage term and/or the total amount payable.
Egg estimates that on the current fixed rate deal, someone with £5,000 in savings could save more than £13,000 in interest and repay the mortgage one year and nine months early. Those figures increase to more than £71,000 in interest and more than nine years early for someone with £50,000 in savings*.
However, please note that The Offset Mortgage Centre cannot advise on or arrange mortgages from Egg.
