It seems everyone who’s anyone wants a flexible tracker mortgage or offset mortgages these days, and remortgage customers are no exception. The good news is that there are plenty of product to choose from. Recent research among mortgage broker for property investors showed that flexible tracker deals are gaining in popularity and lenders have responded by increasing their flexible tracker offerings. We’ve searched for some of the most cost effective flexible tracker deals for remortgage customers. Here are four repayment remortgage deals to consider, based on borrowing £90,000 over 25 years.
C&G Offset Mortgage
First in our flexible tracker roundup is Cheltenham and Gloucester, with a flexible tracker mortgage set at 0.58 per cent above the Bank of England base rate for the life of the mortgage. The overall cost for comparison is 6.3 per cent. There are several fee incentives with this flexible tracker including no valuation fees, no arrangement fees, free legal fees or £400 rebate and no higher lending charge. There is no redemption administration fee so there is no early repayment charge. Both overpayments and underpayment are allowed and borrowers can reduce the balance on the flexible tracker mortgage by 10 per cent a year without penalty. The true cost over 25 years is £175,452*.
The next flexible tracker deal is from Woolwich, with a flexible tracker mortgage set at 0.47 per cent above the Barclays base rate for the life of the mortgage. The overall cost for comparison is 6.2 per cent. Remortgage customers pay valuation fees of £355, no arrangement fees, free legal fees and no higher lending charge and get a £200 cashback depending on preferance. There is a redemption administration fee of £275, which is the only early repayment charge. Both overpayments and underpayment are allowed (subject to conditions) and borrowers can reduce the balance on the flexible tracker mortgage by 10 per cent a year without penalty. However remember underpayments and payment holidays could increase the mortgage term and/or the total amount payable. The true cost over the term is £174,327**.
Norwich and Peterborough Building Society Tracker
A third deal is the Norwich and Peterborough flexible tracker mortgage. The rate is 0.59 per cent above the base rate for the term of the mortgage, giving a current APR of 6.4 per cent. Remortgage customers will pay £499 arrangement fees, no valuation fees and no legal fees. However, there is no longer a higher lending charge. Borrowers can overpay (by lump sum or regular payment). The early repayment charges on this flexible tracker mortgage include mortgage interest to the end of the month, a deeds fee of £45 and a discharge Fee of £160. There is also a redemption fee of £160. The true cost over the term is £176,968.
Finally, there’s a good flexible tracker package from Egg. The interest rate is at 0.89 per cent above the base rate for the life of the mortgage, which gives an annual percentage rate (APR) of 6.6 per cent. With this flexible tracker, there are no arrangement fees, no valuation fees and no higher lending charge. Lump sum or regular overpayments are permitted up to a ceiling of 10 per cent a year. There is a redemption fee of £50, which is the only early repayment charge. The true cost of this flexible tracker over 25 years is £181,264****.