As offset mortgage rates rise, others are cut, so which are the best deals?
Average mortgage rates appear to be increasing for both fixed and tracker offset products. Lenders arrangement fees have also been rising. For the latest rates call Deal Direct, we are constantly comparing products and sourcing the best offers.
According to recently published figures, for a 75% loan to value mortgage, average offset rates have risen by around 0.89% over the last few months. Average arrangement fees have also risen by around £200 making offset mortgages less competitive than they have been in the past.
Offset mortgages allow you to save money on your mortgage repayments by offsetting your savings against your mortgage loan. As offset mortgages rates become more expensive you will need a larger amount of savings to balance the increased rates, to benefit from the offset terms.
With some competition in the standard fixed rate market some rates have been falling. Statistics suggest that the average for a 5 year fixed rate has dropped to its lowest in many months. With the Bank of England base rate still at an historic low, tracker products are also competitive.
For a comparison of different types of product and lenders mortgage rates, call Deal Direct.
We have access to whole of market lending and are well placed to secure the best offers available for all types of mortgage.
