Bristol & West Mortgages is launching two offset mortgages with the added security of a capped rate.
Brokers clients can choose either a 4.89% at Bank base rate plus 0.89% for the term of the mortgage, capped at 5.89%.
Or they can opt for a deal at 4.99% , Bank base rate plus 0.99% for the term of the mortgage capped at 5.99% with free legals for remortgagers and free valuation.
Given the widely predicted view that interest rates will continue to rise, brokers' clients may have concerns that they will be unable to meet their mortgage payments. A capped rate mortgage can help to alleviate these fears as the rate is guaranteed not to rise above the capped level until June 2006.
Bristol & West Mortgages is offering these rates with all of the benefits of an offset mortgage.
Available up to 90% LTV, it is among the few fully flexible capped rate products in the market. Overpayments, underpayments and payment holidays are just some of the benefits of offsetting and brokers clients can borrow back overpayments at the original mortgage rate. Interest is calculated on a daily basis to ensure that borrowers get the most of any payment they make.
The new mortgages will emphasise the benefits of offsetting, making savings work more efficiently as borrowers will benefit from paying savings into their offset account.
By doing this, customers can either maintain current mortgage repayments, reducing their overall mortgage term and saving thousands in mortgage interest, or can reduce their monthly mortgage payments. Borrowers also have immediate access to their savings.
Bob Stanworth, senior product manager for Bristol & West, says: “This offers brokers' clients two exceptionally competitive rates, with the added benefits of offsetting and peace of mind.”