When searching for the best offset deals, it is vitally important to shop around. Because the UK mortgage market is so vast, there is a real need to compare offset mortgages against each other, take your time and know exactly what you are looking for. Only then can you weigh up each point and decide which deal will be right for you.
Compare the headline rates.
Of course, the headline rate is important when you compare offset mortgages, but remember its not always the most vital element of the mortgage, all the other aspects must be considered too. Also, with an offset deal, you need to calculate what rates you will be paying with more and less offset against the loan. Before deciding on a rate, think of all the eventualities.
Compare the accounts.
The account, or accounts, attached to the offset mortgage is crucial. To compare offset mortgages, one must look at what you can do with the account. Does it offer all that a regular high street account offers? Will you need an account that allows you to make regular transactions? Or do you want an account that allows you to save rather than spend? Do you need debit cards or even credit cards attached to the offset account? Also, some lenders will limit what can be taken out of the account each month, so that must always be considered. Simply, the key compare offset mortgages is to know exactly what you need every month out of your offset account.
Compare the interest rates.
One of the most inviting extras with an offset mortgage is the tax break on your money. There is no interest earned within the offset accounts, so there are no taxes owed and the money just helps you save on your mortgage, not line the taxmans pockets. So if you are looking to compare offset mortgages to find the one that will make you the most money, the interest rate on the account, or accounts is paramount. If you are planning to save, or planning to let your money work the offset mortgage with the best account rate could be your best choice.
Compare the limitations.
To compare offset mortgages, one must compare the limitations as well as the positives. Many offset deals may limit what you can borrow, depending on your credit status, others may limit what you can take from your account. Also, think of the future, will you be able to take out extra loans on top of the offset mortgage? Or will you be taking out more from the account in the future? Knowing what you want to do in the future can be as important as knowing what you want to do now when you compare offset mortgages.
Compare the hidden extras.
Looking at the rates, the extras and the limitations will give you a good idea when it comes time to compare offset mortgages. but dont forget the small print. Those hidden extras, fees and possible penalties may not seem a problem now, but in the future these things could come back to haunt you. Is there an exit fee? Application fees? Early repayment charges? Its the little things that could decide what you choose when you compare offset mortgages.
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