If you have a significant sum available to place in a savings account, an offset mortgage can be a helpful way of minimising the cost of your mortgage. I was recently able to assist a British client with an offset mortgage facility, on a case that clearly illustrates how useful this type of facility can be.
My client had a very healthy income and a straightforward profile. He was looking to purchase a desirable £4million property and wanted to place 50% as a deposit, leaving him with a £2million facility to borrow. He also hoped to secure a 5-year fixed-rate, considering the fact interest rates are looking set to rise over the next few years.
I, therefore, set to work speaking with my extensive lender network to find the best possible deal. There are a number of excellent offset mortgage products currently on the market, but many of these have restrictions in terms of how much of the mortgage can actually be offset.
Fortunately, I have an excellent relationship with one lender who can offer a fully offset facility. I secured a 5-year fixed-rate facility at 1.9% for my client, which is an excellent rate for a loan of this size regardless—however because my client was able to place £2million in savings, this essentially fully negated the cost of the interest payments.
This meant that, after making his first month’s payment, this facility was a fully offset mortgage. This was an excellent result for my client; if you would like advice about the possibility of an offset mortgage facility, I would be happy to discuss your options with you at your convenience.
Enness Global Mortgages has a wealth of experience in securing large mortgage facilities. No matter the complexity of your case, it’s likely we can help. Take a look at our other case studies for more examples of how we can help.