Royal Bank of Scotland Offset Flexible Mortgage

Royal Bank of Scotland "One Account" Offset Flexible Mortgage, Expert Review

Royal Bank of Scotland Offset Flexible MortgageThe Royal Bank of Scotland offset flexible mortgage is an offset mortgage which links an offset mortgage with a savings account, a current account, or both. The accounts must be held with the Royal Bank of Scotland. The Royal Bank of Scotland offset flexible mortgage has no arrangement fee and remortgagers will have the standard legal and valuation costs paid for them.

Like other offset mortgages, the Royal Bank of Scotland offset flexible mortgage allows borrowers to overpay, underpay, take payment holidays and have access to additional borrowing. Interest continues to accrue during payment holidays and underpayment and this will increase the outstanding loan amount. The Royal Bank of Scotland offset flexible mortgage is available at interest rates of between 6.6 per cent and 7.5 per cent, for an annual percentage rate (APR) of between 6.9 per cent and 7.8 per cent, depending on the loan to value. The Royal Bank of Scotland offset flexible mortgage with a loan to value of up to 99 per cent.

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Who Can Have An RBS Offset Flexible Mortgage?

The Royal Bank of Scotland offset flexible mortgage is available to borrowers over 18 who wish to borrow at least £30,000 over three years. It works through an offset arrangement which links the selected current account and/or savings account to the mortgage. Up to three savings accounts can be included in the arrangement. Monthly mortgage payments are calculated before taking account of offsetting, so borrowers usually overpay their mortgage.

The bank's own illustrations suggest that a couple nearing retirement who have £50,000 left on their mortgage and £40,000 in savings could make considerable savings with a Royal Bank of Scotland offset flexible mortgage. By paying interest on only £10,000, they could save more than £12,000 in interest and shave a couple of years of the remaining ten years of their mortgage*.The Right Mortgage For You Image

Offset Flexible Mortgages For Business

The Royal Bank of Scotland offset flexible mortgage is also available to the bank's business customers, with certain restrictions. Customers who are sole traders (that is, in business by themselves)or in a simple partnership (in business with one other person) are eligible for a Royal Bank of Scotland offset flexible mortgage for business. Linked accounts must be in the names of the business partners or, for a sole trader, in the name of the trader and one other person.

With the Royal Bank of Scotland offset flexible mortgage business customers can link one business current account and up to three business savings accounts to their personal mortgage. They can forego the interest on these accounts in favour of offsetting the balance against their outstanding mortgage loan. Business and personal accounts remain separate.

The Royal Bank of Scotland offset flexible mortgage offers the same deal as personal offset for business customers. This includes overpayment, underpayment, additional borrowing and payment holidays. According to the Royal Bank of Scotland a self-employed person with £100,000 offset flexible mortgage and £20,000 in savings could save more than £40,000 in interest on a Royal Bank of Scotland offset flexible mortgage.

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Pro's

Excellent on-line banking

Con's

A limited product range compared to other lenders

Features

No account tie-ins and portable too

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