Independent Mortgage Advice
At Financial Advice Centre, we know that securing a mortgage and buying a property can be an emotional, pressurised and time consuming experience.
Whether you are a first time-buyer purchasing your first home, looking to move home, refinance, self-build or buy to let, we can help.
We review the whole of market to help you select the right mortgage package for your needs. Our independent mortgage advisers guide you through the process and are on hand to answer your questions as well as ensuring all the fine print and deadlines are taken care of so you don’t have to. We aim to take the pressure off you and manage the process so there are no unnecessary delays.
We can help you with any of the mortgage options listed below. For specific advice, please get in touch. email@example.com or 01905 723 058.
Your home and property may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate some aspect of buy to let mortgages.
Your home may be repossessed if you do not keep up repayments on your mortgage.
With an offset mortgage you can potentially reduce the amount of interest you pay by offsetting a credit balance against the mortgage debt. Some lenders facilitate this through a single account (usually known as a current account mortage), others offer multiple accounts that allow customers to virtually separate their finances, but whichever the mechanism, the offsetting principle is the same.
Unspent income is offset against the amount of mortgage debt outstanding so you only pay interest on the net amount owed. For example, if the mortgage balance outstanding is £150,000, but you have a credit balance of say £10,000 in a current or savings account, interest is calculated on the net £140,000.
Normally a borrowing limit applies, and it is usual that a borrower can redraw against this limit as the mortgage is paid down. Although limits may be decreased over the term to lock in capital repayments, problems can still arise for undisciplined borrowers who choose to effectively 'withdraw' previously made mortgage payments.
However, with good management and discipline, an offset mortgage can result in significant interest savings and facilitate earlier repayment of the mortgage, but it is very important to ensure you are the right person for this type of mortgage.