John Charcol has launched a three-year tracker offset at Bank of England base rate plus 0.19% and an APR of 5.6%.
Ray Boulger, senior technical manager at John Charcol, says: “The concept of offsetting is brilliant but until now has always come at too high a price to be good value for most borrowers. This mortgage changes that with a rate only marginally higher than the best rate on a non-offset three-year tracker. Offsetting is the cr笥 de la cr笥 of flexible mortgages, combining full flexibility with maximum convenience. Getting maximum value from offsetting is about convenience of using the facilities as well as a market leading rate. This mortgage is even better as, unlike many offset mortgages, it allows borrowers to link a current account to their mortgage as well as one or more savings accounts.”
He adds: “An additional benefit for remortgagers is that as well as free legals the whole valuation fee is refunded. Many remortgages which offer a free or refunded valuation fee cap this benefit at around 500, but with this deal there is no limit. Even on a remortgage for the maximum loan of 5m would get the full amount refunded, despite this being several thousand pounds. A further benefit for all borrowers is that, unlike many other tracker and discount mortgages, this deal has no collar and so borrowers are guaranteed to see their rate move in line with Bank base rate until February 1 2009 even if base rate plumbs new lows.”