Flexible Tracker Mortgage | How To Reduce The Fees You Pay

If you've got a flexible tracker mortgage, you already know that when the Bank of England base rate goes up, then your mortgage payment will go up, and when it goes down, so will your mortgage payment. With many pundits predicting more base rate reductions through the early part of 2008, you'll want to make sure that your pocket doesn't suffer unduly. Although you can't do anything about the interest rate on your flexible tracker mortgage, you can try to make sure that you pay as few additional fees as possible.

One of the fees home buyers might pay on a flexible tracker mortgage is an arrangement fee. Another typical charge is a fee for valuing the property being purchased. This can range from about £299 to upwards of £700, depending on the property value. Flexible tracker mortgage holders will also have to pay legal fees. Depending on the deal, they may also have to pay early redemption charges if they repay their mortgage early. But who wants to pay all those fees? Most flexible tracker mortgage holders want to keep as much money as possible in their own pockets. With that in mind, we've searched for flexible tracker mortgage lenders who charge you as little as possible for the money you are borrowing. Remember that deals can change without warning, but if some lenders are offering these deals today, other flexible tracker mortgage lenders will offer them tomorrow, so shop around if these deals are gone.

Flexible Tracker Mortgage Deals

The Hinckley and Rugby Building Society offset mortgage is 0.24 per cent above the Bank of England base rate for the term of the mortgage, giving a current annual percentage rate (APR) of 6.5 per cent. The variable rate is capped at 0.49 per cent above the base rate. There are arrangement fees of £795, valuation fees of £195, but no higher lending charge on this flexible tracker mortgage. Remortgage customers will have their legal fees paid. Overpayments are permitted (by lump sum or regular payment) and underpayments and payment holidays are allowed after six months. The only early repayment charge is a sealing fee of £195. However remember underpayments and payment holidays could increase the mortgage term and/or the total amount payable.

The Woolwich flexible offset mortgage is 0.75 per cent above the base rate for the term of the mortgage, giving a current APR of 5.7 per cent. There is currently an arrangement fee of £595, no valuation fees and no higher lending charge on this flexible tracker mortgage. Overpayments are permitted (by lump sum or regular payment) of up to 10 per cent a year. The only early repayment charge is a redemption fee of £275.

Abbey offset mortgage is 0.49 per cent above the base rate for the term of the mortgage, giving a current APR of 6.3 per cent. There is currently an arrangement fee of £999, no valuation fees and remortgage customers will have their legal fees paid. However, there is no longer a higher lending charge on this flexible tracker mortgage. Overpayments are permitted (by lump sum or regular payment). The early repayment charges on this flexible tracker mortgage include mortgage interest to the end of the month, and a discharge fee of £225.00.

However, please note that The Offset Mortgage Centre cannot advise on or arrange mortgages from the Hinckley & Rugby Building Society or Egg.

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