利用者‐会話:Erly20ws188h

-- Erly20ws188h 2012年2月17日 (金) 15:08 (UTC)
Offset mortgages are fairly new to the UK market place spot. They were introduced to the UK in the late 1990s and originated from Australia. They were seen as a niche product, but this has changed considering that interest rates have decreased and the market has opened up. The pr... An offset mortgage comparison is not as straightforward as it would first seem. This article will give an overview of an offset mortgage and discuss how to compare offset mortgages to support you find the right a single. Offset mortgages are fairly new to the UK marketplace location. They were introduced to the UK in the late 1990s and originated from Australia. They were seen as a niche item, but this has changed considering that interest rates have decreased and the market has opened up. The principle of offset mortgages is relatively simple when a borrower takes out an offset mortgage, it is linked to their savings and/or current account. This permits the borrower to offset their mortgage debt against the cash in their accounts, therefore decreasing the amount of interest owed. For example, if a borrower has a 250,000 mortgage and 50,000 in savings, interest will only be charged on the difference, i.e. 200,000. The range of offset mortgages within the marketplace place has increased in recent years and consequently, offset mortgages have becoming increasing complex. For an offset mortgage comparison, you cant just compare the Annual Percentage Rate (APR) as you would with a traditional type of mortgage. The APR has limited value with an offset mortgage due to the fact nothing at all else is taken into account, such as the flexibility of the account, set-up charges, and Early Redemption Charges (ERC). To get an offset mortgage comparison, it is important to look at the crucial aspects of an offset mortgage and to ask yourself what can my offset mortgage do for me? Crucial elements include: Flexibility of the account Overpayments - are you likely to make frequent overpayments into your mortgage account? If so, you will want an offset mortgage that does not penalise for frequent overpayments or penalise you for paying off your mortgage early. Underpayments and/or payment holidays - do you want a career break with underpayments or payment holidays from your mortgage? Not all offset mortgages offer you underpayments or payment holidays, whereas some types of offset mortgage offer the service, but you usually have to make a specific amount of overpayments before you are eligible. Credit limit - will you require a lump sum of money in the future, for example, home renovations? Some offset mortgages let a credit limit on leading of the agreed mortgage, based on the amount of equity in the property, which acts as a loan facility. Debt - are you carrying credit debt and individual loans? Some offset mortgages let the debt to be incorporated into the mortgage package, possibly top to a lower repayment rate. The debts can also remain unsecured. Number of accounts - can you add a lot more than one particular savings/current account to your mortgage? Do you have family members members that are willing to link their bank accounts to your mortgage debt? If so, you can further lessen your interest payments. Charges and interest rates At 1st glance, an offset mortgage with an initial low APR for two years and low arrangement fees may appear appealing, but if it has an ERC and no underpayment facilities, it would not be appropriate if you wanted to make frequent overpayments to spend your mortgage off early, but had been organizing to have a profession break in the future. There are several lenders in the mortgage market that supply various varieties of offset mortgages. To guide you by means of the intricacies of an offset mortgage comparison it would be best to seek suggestions. An independent mortgage broker can advise you and aid you with an offset mortgage comparison to make certain you can have the very best offset mortgage for your requirements. mortgage home loans