Offset Mortgage - cheapest short term deal

cdbe1

We wish to buy a house worth 150k (50% deposit, balance to be funded by an Offset mortgage).

We will be in a position to reduce the Offset balance to 0 within 12 months; after this we will use the facility for quick short term borrowing to buy property at auction.

We are looking for the lowest overall cost for 12 months, I guess for this amount of borrowing this would be the one with the lowest fees.

Best we have found so far is the Virgin One account Flex VR50 which appears to want £257 for a valuation, has no fees and has an interest rate of 3.65%.

Is there anything better than this?

Thanks

HappyMJ

cdbe1 wrote: »

We wish to buy a house worth 150k (50% deposit, balance to be funded by an Offset mortgage).

We will be in a position to reduce the Offset balance to 0 within 12 months; after this we will use the facility for quick short term borrowing to buy property at auction.

We are looking for the lowest overall cost for 12 months, I guess for this amount of borrowing this would be the one with the lowest fees.

Best we have found so far is the Virgin One account Flex VR50 which appears to want £257 for a valuation, has no fees and has an interest rate of 3.65%.

Is there anything better than this?

Thanks

Virgin One does not exist any more so not sure how you saw this deal. It's known now as "The One Account" and has been since 2003.

There are better but I do like The One Account myself. It has more fees than the valuation only. You'll have TT fees and legal fees to pay as well amongst others.

cdbe1

Thanks,

the Virgin bit was from my memory, you are right it is now just the "One Account". I am under the impression that tt, legal and Land Registry fees will be much the same whoever I go with?

cdbe1

Thanks,

the Virgin bit was from my memory, you are right it is now just the "One Account".

I am under the impression that tt, legal and Land Registry fees will be much the same whoever I go with?

cdbe1

OK. done some more digging and found: Yorkshire BS 2.89% 2 year fixed offset mortgage, £95 fee (£265 valuation but £250 cashback). We will probably increase mortgage borrowing to 75% as half of the 50% deposit we were intially considering is in ISA's/NSI earning over 3%. This looks a cracking deal - virtually no fees and a low interest rate.

My only concern is that it is not a true CAM mortgage like the One Account - it will need a bit more management, i.e. moving money between current and savings account and back

getmore4less

If the plan is to draw funds then the interest rate will be important.

Most Offsets can be run as a CAMs, they include an appropriate account in the offset pool