Offset Mortgage Guide

Offset Mortgage Guide | In Search Of Flexibility

Red TapeThis offset mortgage guide describes some of the mortgages available for those who need the most flexibility. Not every home buyer fits the lenders' perfect profile, with spotless financial records and just the right deposit. This offset mortgage guide gives an indication of what might be available to people looking for different offset mortgage products. The offset mortgage guide covers buy to let offset mortgages, self certification mortgages and family offset mortgages.

Self Cert Offset Mortgages

No offset mortgage guide would be complete without explaining what self certification is and why people need it. There are thousands of people in the UK on a variable income and they still want to buy houses. However, most lenders want to see proof of income, which means that people who are self employed or earn most of their money through bonuses or commissions, may not qualify for standard offset mortgage deals. Here's a brief offset mortgage guide to self cert mortgages.

Self cert offset mortgages may require higher deposits and have higher interest rates than standard offset mortgages. However, there is no need to prove your income and you may be able to switch to a standard offset mortgage after a period of successful repayments. Here's an offset mortgage guide to some of the The Right Mortgage For You Imagelenders in this market. Lenders who offer self cert offset mortgages include Bristol and West, Kensington Mortgages and The Mortgage Business. Loan to value is generally between 75 and 90 per cent, with interest rates between 6.1 per cent and 8 per cent APR.*

Family Offset Mortgages

The next stage of the offset mortgage guide looks at family offset mortgages. These are a relatively new offset mortgage product that address the difficulty first time buyers have in getting onto the property ladder. The housing market has been booming for a long time and debt-ridden graduates may find it difficult to buy a home and manage an offset mortgage. Here's an offset mortgage guide to some of the providers. Yorkshire Building Society offers a family offset mortgage which allows borrowers to link the savings accounts of three family members or friends to their account. A similar facility is also offered by Lloyds TSB and Cheltenham and Gloucester. This means that first time buyers could pay even less interest than with a standard offset mortgage.

Buy To Let Offset Mortgages

The buy to let market is booming and offset mortgage deals with it. Here's an offset mortgage guide to buy to let mortgages. Most buy to let mortgages have a limit to the number of properties a borrower can have mortgaged with the lender. This could be as few as 3 or as many as 15. Check out the lender's buy to let offset mortgage guide for information about this area. The rules also differ depending on whether the properties are houses, flats or new builds, with certain types of housing prohibited altogether. Many buy to let offset mortgage lenders refuse to lend money for student housing, for example. Offset mortgage lenders will have rules about borrowers' minimum income and the maximum loan available, though this can vary quite widely. Current interest rates are between half a per cent to one per cent above the Bank of England base rate**.

This offset mortgage guide has given three examples of flexible offset mortgage products for different circumstance. When borrowers are ready to make a decision they should also ask the lenders for their own offset mortgage guide, so they have up to date figures on the offset mortgage products available. Alternatively, use our mortgage brokerage - our advice is free and we access the latest rates from the whole of the market.

However, please note that The Offset Mortgage Centre cannot advise on or arrange mortgages from the Yorkshire Building Society or Lloyds TSB

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