What is the best mortgage rate?
When considering what is the best mortgage rate Deal Direct recommend that would-be borrowers consider an offset mortgage. Such mortgage deals are a very tax-efficient product and well suited to high earners and those who receive an annual company bonus.
Home-buyers who have the benefit of savings are able to offset the amount they have in their savings account against any outstanding mortgage balance. Offsets offer a degree of flexibility and allow mortgage-holders to significantly reduce their mortgage term.
If a mortgage-holder has a loan of £100,000 offset against their savings account containing for example £10,000, then the interest on the mortgage is only calculated on the £90,000. Reduced interest payments are a way of ensuring the mortgage is paid off much quicker.
The Royal Bank of Scotland currently offer rate of around 4 per cent for an offset, for details of this and other lenders offset mortgage rates contact 'whole of market' broker Deal Direct.
As well as looking at what is the best mortgage rate it is also important to consider the mortgage term agreed and any fees that will be charged, overall cost comparison is important and Deal Direct can do this on your behalf..
To find out what is the best mortgage rate for offset and other types of mortgages contact Deal Direct.
