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Can You Get A Fixed Rate Offset Mortgage?

Offset mortgages can be a great way of saving money and reducing the length of time you’re tied into a mortgage. If you’ve got plenty of money saved in current accounts, an offset mortgage may work out as a cheaper option than a conventional mortgage.

In this article, we’ll be exploring the pros and cons of offset mortgages and answering the question: can you get a fixed rate offset mortgage?

Offset Mortgage Broker Northampton

First off though, a little bit about us. At Derngate Wealth Management, we offer expert, tailored mortgage advice to people in all walks of life, from first-time buyers through to experienced landlords.

Our team of friendly, knowledgeable mortgage advisors are on hand to search the entire market, securing a deal that works for you. In search of an offset mortgage broker in Northampton? You’re in the right place – contact us today for a free initial consultation.

Pros and cons

Offset mortgages have their fair share of advantages and disadvantages, like all types of mortgages. It’s sometimes referred to as a ‘current account mortgage,’ as it works in a similar way to a current account.

As for the pros and cons? The pros are that, if you have enough money saved in ISAs and current accounts, an offset mortgage could be cheaper for you and can be repaid quicker. There can also be tax benefits to an offset mortgage, making it an all-round lower-cost alternative – provided you have enough saved up to begin with.

On the flipside, lenders will often look for a higher deposit than for conventional mortgages, and interest rates may be higher. There’s also a lack of flexibility, as fewer lenders offer offset mortgages – making it harder to get a good deal. Your savings account has to be with the same provider as your mortgage and you will cease to receive interest on your savings, as it is ‘offset’ against the mortgage interest

This means it can be tricky to identify a stand-out option which saves you money in comparison to a conventional mortgage. Fortunately, the team at Derngate Wealth Management are experienced in this area and have whole market access, allowing us to shop around to find an unbeatable deal.

Fixed-rate offset mortgages

To answer the question posed at the beginning of this article, yes – there is such a thing as a fixed-rate offset mortgage. Much like with a standard mortgage, you can opt for a fixed-rate offset mortgage which maintains your monthly payments at a set level for a limited number of years – usually up to five.

Tracker rates are a little more risky, as your monthly payments can go up or down, but can work out cheaper depending on how the base rate evolves during your term.

If you’re unsure of which offset mortgage is best for you, we can help. To book a free initial consultation with one of our mortgage advisors in Northampton, get in touch today.

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