Best Offset Mortgage rate

sspyrou

I am looking at remortgaging to an offset mortgage.

Without going into the reasons for an offset which I know are quite long and complex, I was wondering what is the best rate people have found.

The Loan to Value (LTV) for my mortgage is less than 50%.

The best rate I have found is with the Woolwich who are offering:
0.74% tracked above the Barclays Base Rate variable (currently equating to 5.74%) with a £595 application fee. The APR is 6%

Have I found the best rate or are there better offset rates out there ?

minimike2

If its just the rate you are interested in then thats about the best there is.

There is only one cheaper that I know of, but you only get the rate for a year, whereas the Woolwich rate is a lifetime deal, making it a much better option.

sspyrou

I am primarily interested in the rate although the initial fees play a role, which is why the APR rate is quite important.


The other concern is that the tracker is based on Barclays Base Rate and not the BoE rate.

minimike2

The rate on the other deal is only 0.09% lower, and like I said only for a year, when it reverts to a much higher rate, plus there is a fee of £499, and a valuaiton fee, making it pointless. (And its a discounted variable too).

The Barclays Bank Base Rate follows the BoE base rate, its just that the changes take effect from the 1st of the following month rather than on base rate decision day.

bermondse1

Don't forget that loan amount is a major factor in balancing rate vs fees.

The lower the loan amount, the less rate is important, and the more fees are!

I was looking at the Woolwich deal, but for my relatviely low loan amount, it is much more cost effective to go for a much higher rate with no fees.

sspyrou

My loan amount is £200k so I guess fees are a drop in the ocean then !