The Norwich & Peterborough offset mortgage is available at up to 90 per cent of the purchase price or valuation of a given property. The minimum loan is £50,000. Borrowers who wish to move the mortgage to a new property will be able to do so, as the Norwich & Peterborough offset mortgage is portable. Standard valuations for the mortgage are free.
The Norwich & Peterborough offset mortgage allows borrowers to make overpayments whenever they wish. They can also make underpayments or take payment holidays up to the value of previous overpayments. On some products legal fees are paid for remortgagers. Homebuyers who have a Norwich & Peterborough offset mortgage can receive a £200 cashback on completion of the mortgage if cashback deals are available. However underpayments and payment holidays could increase the mortgage term and/or the total amount payable.
With the Norwich & Peterborough offset fixed rate mortgage early repayment charges may be due if the mortgage is paid off during the early years of the mortgage. There is also a reservation fee and a fee if borrowers take buildings insurance from another provider. There is no early repayment charge with a Norwich & Peterborough offset mortgage that is on a tracker rate.
The Norwich & Peterborough offset mortgage is available as a repayment or an interest only mortgage. Interest only mortgages must be repaid with an Individual Savings Account (ISA) or a pension plan. Lump sum payments can be made to reduce the capital on the Norwich & Peterborough offset mortgage, though there may be a charge depending on the actual mortgage deal.
In order to have a Norwich & Peterborough offset mortgage, borrowers must have a Norwich & Peterborough Gold current account or a Norwich & Peterborough savings account which will be linked to the mortgage account. There are two types of Norwich & Peterborough offset mortgage.
The first Norwich & Peterborough offset mortgage is a five year fixed rate deal. The interest rate starts at between 5.78 per cent and 5.88 per cent, depending on the loan to value. 
It then moves to 0.9 per cent above the Bank of England base rate for the remainder of the term. The APR on the first deal is 5.78 per cent and there is an early repayment charge for full repayment within the first five years. The reservation fee is £385. The second Norwich & Peterborough offset mortgage deal is a lifetime base rate tracker set at 0.49 per cent above the base rate. The APR is 6.3 per cent. There is a £499 lenders reservation fee and a free valuation is included for remortgages
There is also a commercial variety of the Norwich & Peterborough offset mortgage. This allows borrowers to link their mortgage to an offset savings account or an offset business banking account. Credit balances in the business account can be used to offset up to 30 per cent of the mortgage loan.
According to the building society's online calculator, someone with a Norwich & Peterborough offset mortgage on the current lifetime tracker deal who earned £1,000 a month, saved £100 a month and had a £120,000 mortgage would save more than £27,000 in interest and repay the mortgage three years early*.
However, please note that The Offset Mortgage Centre cannot advise on or arrange commerical mortgages from the Norwich & Peterborough Building Society.
Choice of rates available
No cheque book facility, minimum advance £50,000
Portable and payment holidays are available
