New range of Barclays Woolwich Offset mortgages
Barclays (barclays.co.uk) has just introduced, available until 20th September 2011, a two year Offset tracker at 2.38 per cent (base +1.88 per cent) with a £1,499 fee, which leads the high street at 70 per cent loan to value (LTV). At 75 per cent (LTV), a two year Offset tracker has been further more launched at 2.88 per cent (base + 2.38 per cent) with a £999. Both deals revert to base +2.99 per cent after the two years.
As an alternative an Offset lifetime tracker rate at 70 per cent LTV is available at 2.98 per cent (base + 2.48 per cent) with a £999 fee. For customers that qualify for a loyalty mortgage then the rate is reduced by 0.20 per cent (2.78 per cent) for the first two years. All other offset deals remain unchanged.
Offset mortgages can benefit savers and tax payers by helping to limit the impact of tax and inflation.
A borrower with a £100,000 mortgage, with £750 average current account balance, £10,000 savings and an additional £100 being added to their savings each month could save almost £15,500 (£15,464) in mortgage interest or pay off their mortgage over 3 years early. (calculated on the Offset lifetime tracker base + 2.48 per cent).
The Woolwich Offset has the advantage of being linked to both current and savings accounts, including cash ISAs, and tracks for the life of the mortgage. All Woolwich tracker mortgages come with ‘Switch and Fix’ which allows borrowers to switch to any current Woolwich fixed rate mortgage deal with no early repayment charge giving them the opportunity to benefit from low tracker rates now, with the security of fixing their payments at any point they choose.
Source: Barclays
