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Halifax report ‘buoyancy’ returns to the UK housing market

Halifax report ‘buoyancy’ returns to the UK housing market

According to mortgage lender Halifax, house prices across the UK rose at their fastest pace of the year during August. After reportedly suffering after the UK’s vote to leave the European Union last year, it has been suggested that prices rose 1.1% last month.

In comparison, during July they rose by 0.7%, following a 0.9% slump back in June. The causes for this increase in housing prices are suggested to be linked to the current high employment rate – said to be at an historic 42-year low. While critics may suggest that the validity of that statistic is put into doubt by the high levels of those on zero hours contracts, Russell Galley – managing director of Halifax Community Bank, said, “Recent figures for mortgage approvals suggest some buoyancy may be returning”.

The Independent are reporting that one of the challenges that may be facing future growth is wage growth. This is still lagging behind the consumer prices – suggesting that in real terms, the amount that people are getting paid isn’t keeping up with their cost of living.

They go on to note that inflation overall has compounded that particular problem. According to data, this has outpaced wage growth for the past few months.

Speaking to The Guardian, north London estate agent and a former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf poured cold water on the data, lest people get carried away.

“It is worth remembering that house price growth is being underpinned by a shortage of supply, including housebuilding, historically low mortgage rates and relatively low unemployment, rather than strong buyer demand.”

He went on to note that the effects of Brexit may have been overplayed in the short-term, but it’s long-term effects might have been underestimated.

The Telegraph noted that, while August’s growth may be better than July’s, it pales in comparison to the 10% rise in March 2016. That particular rise was reportedly fuelled by people purchasing houses ahead of a stamp duty increase for buy-to-let and second homes that was due to come into effect the following month.

However, they do still note that the average house price in the UK is now £22,293 – beating the previous high of £222,190 at the end of last year.

This report from the Halifax goes against what fellow lender Nationwide said towards the end of last month. The BBC reported that data showed that prices dropped last month for the first time since May, with a 0.1% drop. At that time, Nationwide’s chief economist said, “Wages have been failing to keep up with the cost of living in recent months and consumer sentiment has weakened. In some respects, the slowdown in the housing market is surprising, given the ongoing strength of the labour market.”

They did, however, note that property prices were still predicted to increase by 2% overall over the course of 2017.

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Rising Property Prices in Altrincham

Rising Property Prices in Altrincham

Housing prices in Altrincham, UK has been on the rise for the past few years. For instance, the price of an average house in the market town in 2015 was £430,000. Fast-forward 12 months and the rates of Altrincham homes have gone up to £470,000, which is a £40,000 increase. Moreover, the average house price in the town was £381,675 in 2013; in 2016, it rose to touch £468,955. The national average during the same period was £289,323. The most expensive street in the town is Broadway, where the average house value is close to £2.8m. The housing prices in Cheadle, which is the next expensive area in Greater Manchester to reside in after Altrincham, are approximately £200,000 less expensive than Altrincham. With property increasing securing the right mortgage has never been more important which is why we advise in talking to local Mortgage Adviser in Altrincham like Eddison Wells.

Average Altrincham House Prices Over the Years

The average property value in Altrincham has been on a significant increase from 2013. The property price in August 2013 was £381,675. In 2016, the value stood at £468,955, which is a 23 percent increase in property value over a period of three years. The average property value in 2014 and 2015 was also more than 2013 prices at £420,394 and £428,831, respectively.

As aforementioned, Broadway is the highest valued street in the town. Hill Top, Rappax Road, York Drive, and some other places follow suit. The other most expensive towns to live in the Greater Manchester area beside’s Altrincham and Cheadle are Sale, Stockport, Bury, Manchester, and a few others.

Why is Altrincham So Expensive, Comparatively?

Altrincham is a 724-year old town in Greater Manchester. It’s basically a market town situated in the northern part of England. Originally, the town was part of Cheshire. It’s now the leafiest southern suburbs of Greater Manchester.

The “leafiest southern suburb” moniker doesn’t necessarily mean the town is the greenest of them all, though the place has its fair share of trees, shrubs, bushes, and the likes. However, the thing that predominantly drives the housing prices in Altrincham is the town’s posh status. You would see a lot of home and industry owners, and professionals residing in the place. In fact, the town’s prosperity is almost unmatched outside the south-east.

The town’s popularity can also be attributed to the fact that it’s replete with nice houses, posh shops, good schools, and also some bit of pleasant-looking countryside. The airport is close to the town, but it’s not too close to render the town constantly buzzing with noise and activity. Moreover, Altrincham is only a few hours away from Manchester, and several other places that are known for their football teams. And some footballers call Altrincham their home as well. Long story short, Altrincham maintains a perfect balance between modern and peaceful living.

With so many facilities and amenities to avail and benefit from, Altrincham must be as expensive as London? No! Not even close! Places such as Southwark, Hackney, and Lambeth are still more expensive than Altrincham, and these places represent only 1/10th of the cost you’ll pay to live in London. So you can imagine Altrincham is nowhere near as premium as London. But honestly, this is the reason why Altrincham is so appealing. It is great value for money overall.

On a macro level, Greater Manchester as a county is witnessing tremendous business growth, with its economy widening at a rate of two times the national average. And, as a result, the housing prices in the county are increasing on a whole, with already popular destinations within its fold such as Altrincham benefiting the most.

Housing Prices in 2017

In 2016, house prices exhibited remarkable resilience. The EU referendum outcome’s uncertainty and stamp duty alterations may have been more impactful, but they weren’t. Strong buyer demand and shortage in proper housing have together ensured the price levels remained steady. Though the house prices are expected to keep going up, the rate at which the prices would increase may come down, when compared to previous years.

In other words, the housing market is expected to lose its pace a bit. However, there won’t be any hard landing as such, which is great news for the market in general. In 2018, the market is expected to regain its momentum. So if you’re looking to buy a property in Altrincham or considering getting a mortgage, this is the best time, for your purchase may become more expensive if you do not spring into action by the end of 2017.

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What Estate Agent in Brighton?

Eight Notable Brighton Estate Agents

Given the appeal and popularity of Brighton as a residential and business area, it’s no surprise that more than a few reputable estate agents are based in this coastal haven. In fact, there are over a hundred estate agents providing the full range of property services in this part of East Sussex. Not all are equally popular, of course, but here are eight notable estate agents serving Brighton, Hove and other outlying areas.

Brand Vaughan

With five Sunday Times Gold Awards for ‘Best Small Estate Agency’ to their credit, Brand Vaughan have certainly made an impact in the region. They currently have one office in Hove (tel. 01273 221100) at 117-118 Western Rd., Hove, and two in Brighton: Kemp Town (tel. 01273 683111) at 110 St George’s Road, Brighton plus their Preston Park office (tel. 01273 504 441) at 219 Preston Road, Brighton. In addition to general property sales and lettings, they are also well known for their student letting services. For more details visit brandvaughan.co.uk

Knight and Knoxley

With over 40 years experience, Knight and Knoxley have built a solid reputation for high-quality property sales and lettings. They have also embraced modern technology and were the first estate agent in the country to provide virtual reality tours of the properties that they manage. Their office is located at Clyde Corner, 2 Clyde Rd., Brighton (tel.01273 286666). Visit their website at Knight and Knoxley.com

Oakley Property

Well known for a diverse range of quality residential and commercial properties as well as land sales throughout Sussex, Oakley Property have four offices. Their Land & Development office is located at 23 – 24 Marlborough Place, Brighton (tel. 01273 688882) and their Brighton & Hove City Office, at 3-6 North Road, Brighton, deals with residential sales (tel. 01273 688881) and lettings (tel. 01273 688884). They also have an office in Lewes as well as one in London. Visit oakleyproperty.com for full details.

Beaumonts Estate Agents

Beaumonts Estate Agents offer a wide range of services for both buyers and sellers. Their speciality is in the sale and lettings of houses and flats in Brighton’s BN1 and BN2 areas. Beaumonts Estate Agents is located at 9 Kings Parade Ditchling Road, Brighton (tel. 01273 550881). See their website at beaumontsresidential.co.uk

John Hilton Estate Agents

Offering properties for sale since 1972, and lettings since 2008, John Hilton Estate Agents cover all of Brighton and Hove. Their sales office is located at 127 Lewes Road Brighton (tel. 01273 608151). For lettings information, call 01273 608151 or visit their website at johnhiltons.co.uk for full details of all the services they offer.

Wilkinsons Estate Agents

A family-run business, Wilkinsons Estate Agents have been serving landlords and tenants in Brighton and Hove for over 30 years. Their friendly but professional approach and unsurpassed local knowledge are two of their greatest assets. Wilkinsons Estate Agents are located at 24 Elm Grove, Brighton. For more information about sales, call 01273 626624 or for lettings call 01273 692233. Also see their website: wilkinsonsproperty.co.uk

Bonett’s Estate Agents

Small but highly successful and popular, Bonett’s Estate Agents exploits its modest size and 25 years experience to provide customers with a first class personal service. The company achieve that by dealing only in sales and lettings, but trusted partners dealing in surveys or other property-related services can be recommended for clients requesting them. Bonett’s Estate Agents is located at 78 St. Georges Road, Brighton (tel. 01273 677365). Their website is bonetts.co.uk

Paul Bott & Co

Having won a Gold Award as the ‘Best Estate Agency in Brighton by the British Property Awards, Paul Bott & Co is a highly regarded Estate Agency. Open seven days a week, they offer free property valuations and provide professional photography and floorplans for those selling or letting their property. Paul Bott & Co are located at 29 Upper St. James’s Street, Brighton (tel. 01273 605530). Visit their Website: paulbottandcompany.co.uk for full details of opening hours and testimonials from satisfied customers.

Mortgage Advisors

Mortgages go hand in hand with buying a house and while it is one of the most stress full times of your life it can be made worse with all the hassle of trying to get the mortgage sorted which is why it’s a good idea to you a mortgage broker such as Eddison Wells, so if you need mortgage advice when buying a home in the Brighton & Hove area we recommend you talk to our mortgage broker near Brighton

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Moving Home In Brighton & Hove Tips

When moving home there is ultimately a gigantic list of things you need to remember and unless you have a IQ of Steven Hawkins its not easy. so we want to try make that list a little easier by doing the work for you finding out some of the little information you would need such a when do my bins get collected or who nows a decent mortgage broker in Brighton? well thats easy Eddison Wells.

So lets get started first on the list council tax, that little payment that comes out for 10 months of the year? or is it different in this new area and how much will my council tax be in Brighton?

Well here are the links you need to use to find out that information –

You can check your property’s Council Tax band and find other information on what to do if you want to appeal against the banding of your property at the Valuation Office website 

Sorry if your in the band H but it must be a lovely house

Now for bin times and collections follow this link simply enter your address and you will be given the dates when you need to have your bins outside, including recycling. – http://www.brighton-hove.gov.uk/content/environment/recycling-rubbish-and-street-cleaning-0 

Why not just have someone move for you? yes it really is so much easier & most companies will provide you with the cardboard boxes but they can be ordered from Amazon too.

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Best Mortgage Deals of 2017

Best Mortgage Deals of 2017

2016 was a fantastic year for homebuyers, with mortgage rates falling to historic lows. These sub-zero rates led to a record number of people remortgaging, as people took advantage of the great deals on offer to save some serious money. 2017 looks set to be a little more unsettled – with rates certain to rise and major political change on the horizon. In this article, Eddison Wells takes a look at the best mortgage deals of 2017, and our predictions for the coming months

2016: Regulation and Record-Low Rates

It was an exciting year for mortgages, as Brexit and technological advancements leading to shifts in the landscape.

Everyone feared the worst following the EU referendum vote on 23 June, but the immediate impact of Brexit was subdued. Mortgage approvals dropped slightly following the vote, but there was no dramatic crash as some expected.

In August, the Bank of England base rate was cut to 0.25%, to the delight of hundreds of thousands of homeowners, who saw their monthly repayments reduced.

Regulation changes saw the buy-to-let market take a kicking, as the Government began phasing in rises in stamp duty. Later in the year, the financial watchdog revealed details of its review into the mortgage market, questioning how fair the mortgage market is for the consumer.

Technological advances saw more people looking to the internet for mortgage advice, and the ‘rise of the robo’ is set to continue in 2017.

Top 5 Mortgage Deals 2017*

  • TSB 1.19%

60% LTV 2 year tracker 1.19% with £995 arrangement fee.

  • Santander 1.19%

60% LTV 2 year fixed 1.19% with £999 arrangement fee. Only available with a Pink broker.

  • Platform 1.23%

60% LTV 2 year fixed rate 1.23% with £1499 arrangement fee. Only available with a Pink broker.

  • Nationwide 1.24%

60% LTV 2 year tracker 1.24% with £999 arrangement fee.

  • Skipton Building Society 1.25%

 60% LTV 2 year fixed rate 1.25% with £995 arrangement fee.

All of the above are remortgage products, illustrating that now is still a great time to remortgage if you wish to secure a better deal. Two of the products are only available when you go through a Pink mortgage broker – just another great reason to use a mortgage broker when looking for the right deal.

Uncertain Times Ahead

With an uncertain political future ahead of us, it’s very difficult to make any assumptions about the next 12 months. We’ve had a year full of surprises, and although it’s difficult to predict what’s waiting around the corner, there are a few areas in which we can be pretty confident about the future.

The Brexit is still causing uncertainty across the market, which is only likely to continue until and beyond Article 50 being triggered. Lending may fall slightly, but the record-low interest rate environment we are in will continue to encourage homeowners to remortgage.

Interest rates are unlikely to move much – there won’t be another cut, with the Bank of England aware that another reduction of rates would seem desperate.

House prices are likely to increase by around 5%, with the housing market remaining a priority to the government. The Chancellor will be looking to stimulate the market, which could well lead to a reduction in Stamp Duty.

 

Buy-to-let mortgage criteria is set to get even tougher this year, with buy-to-let borrowers now needing to prove that they can cover their loan interest with their rental payments, even if rates were to rise to 5.5%. New regulatory rules could mean that investors need to raise larger deposits or up their rent to meet the new criteria.

The Trump Factor 

With Trump’s reign impending, many homeowners are anxious about the future and what may happen to mortgage rates. Our rates are likely to be affected by Trump’s takeover, but it’s uncertain exactly what will happen.

The Guardian’s advice following the election result was to fix your mortgage rate as soon as possible. Locking into a 10-year fixed-rate mortgage now would guarantee you a low interest rate, safe in the knowledge that your mortgage will not rise through the Trump and Brexit years.

In Conclusion

All in all, 2017 could be a good time to buy, as prices are still modest and interest rates are low. However, fixed mortgage rates are likely to continue to creep up as the year goes on.

With this in mind, it’s important to remember that increased competition from lenders who desperately want their market share is likely to keep rates competitive.

It’s worth considering your own circumstances if you are remortgaging or taking out a new mortgage. If you can slash £1000s off your costs and get peace of mind about a fixed rate, it could be something to consider. Rates are only going to rise, so many people will be looking to get a deal sooner rather than later.

So what do the Eddison Wells brokers think?

Matt says: “We have enjoyed a nice long stance of rates being really low, with many sub 1% offers. 2017 has already seen most of these removed, with HSBC being one to name, and it is already looking like we are going to have a unpredictable year.

What Eddison Wells would recommend to consider is that sometimes chasing what is fraction of a percentage could lead to you missing out on what are very good mortgage deals available now. It’s always best to consider your own circumstances, but we say keep in mind that at some point mortgage rates will have to go up.”

If you’d like to discuss your mortgage options, or are seeking advice on any of the above subjects, please contact Eddison Wells Financial on 0800 808 9981.

*Details correct as of 18/01/17

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Probably The Best Mortgage Brokers

The Best Mortgage Brokers? Well we like to think so

Why we think we are the best? just some pionts lets keep it simple

  • We compare over 50 lenders & well over 1000 mortgage products to find you the best deal...
  • No Mortgage No Fee's.. Yes thats right if you don't take our advice or cant get the mortgage there is no fee
  • "Eddison Wells saved me over £600 a month on my monthly repayments, by remortgaging and paying of my outstanding debts" We do our best to do whats best for you.
  • Work for you not the banks!
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2017 Mortgage Rates Will They Finally Rise

HSBC have pulled what was the lowest mortgage rate available which it introduced in June 2016, 1.14% 2 year fixed and they have also increased some of the deals due to rises in costs. This is just one indication that if you have been waiting to fix your costs it might be now or to late.

So as it stands the lowest offer is from First Direct currently 1.09% 2 year fixed, if we take a look back at mortgage rates we can still see that actually the rates are still much lower that 2008 & many people could be saving hundreds a month by switching.

What HSBS had to say about mortgage rates

“When the cost of funding comes down we are always quick to pass on the benefit to customers, and we have been able to do that for almost six months with our 1.14% rate mortgage. The cost of funding has gone up over the last month or so and we have had to reflect that in our recent pricing review.

“We regularly review our rates, and while they still provide good value for those looking to move on to or up the housing ladder, should the cost of funding come back down you can be sure we will reflect that with some great deals.”

Bank of England keep base rate at all time low

Despite other costs increasing, one of the biggest costs affecting mortgages, the base rate of interest, remains at an unprecedented low.

In their last meeting of 2016, the Monetary Policy Committee (MPC) of the Bank of England (BoE) discussed the base rate of interest Thursday 15 December, and decided to keep it at the all time low of 0.25%.

Should you fix a rate now?

It’s looking unlikely that rates will fall much further, so it could be worth fixing your mortgage rate now.

See what a rate rise could do to monthly repayments on a £100,000 mortgage below.

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But bear in mind, barring any dramatic economic shocks, it’s unlikely mortgage rates will dramatically shoot up overnight. So don’t rush into fixing a rate without fully considering your options and the full costs of remortgaging.

We still recommend consulting a mortgage broker for any mortgage advice you might need.

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Altrincham moving home guide

Contact information for when you are moving home in Altrincham

Local moving firms

Altrincham Removal Co
Address: Davenport Ln, Altrincham WA14 5DS
Phone:
0161 929 1518

Council contacts

This web link will list all the different area of Trafford council you might need – http://www.trafford.gov.uk/residents/contacts/contact-us.aspx

Changing your address in Trafford – http://www.trafford.gov.uk/residents/benefits-and-council-tax/council-tax/Change-of-address.aspx 

Bin collection times – https://www.trafford.gov.uk/bincollections/

Mortgage in principle & mortgage broker in Altrincham

If you are just thinking about moving or have seen a property you would like & need a decision in principle then we can actually help with this as Eddison Wells is a mortgage broker and we only charge a fee on completion of your mortgage. If you just thinking about moving and need to understand how much you can borrow then we can help you this by doing a fact find which just means finding out as much information as possible about your situation to best advice what mortgage product is best for yourself, our qualified mortgage broker in Altrincham would guide you through these steps and take care of the whole process for you.

Estate Agents

Thornley Groves Altrincham
4.3 (5) · Estate Agent
0.4 mi · 16/18 Lloyd St
0161 941 4111
Open until 18:00
Gascoigne Halman Altrincham
1 review · Estate Agents
0.4 mi · 26 The Downs
0161 929 1500
Open until 17:30
Bridgfords
2 reviews · Estate Agents
0.4 mi · 15 The Downs
0161 956 2233
Open until 17:30
John N Hilditch
No reviews · Estate Agents
0.8 mi · 162-164 Ashley Rd
0161 929 6363
Open until 17:30
Watersons
3.6 (7) · Estate Agent
0.9 mi · 212 Ashley Rd
0161 941 6633
Open until 18:00
Thornley Groves Hale
No reviews · Estate Agent
0.9 mi · 213 Ashley Rd
0161 941 4111
Open until 18:00
Leaders Altrincham – Letting & Estate Agents
4.7 (8) · Estate Agents
0.4 mi · 8 The Downs
0161 928 5890
Open until 18:00
Property Perspective
No reviews · Estate Agents
430 ft · Victoria St
0161 929 3740
Open until 17:30
Regional Property Solutions
No reviews · Property Consultant
0.3 mi · Grosvenor House, 22 Grafton St
0161 927 7824
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Moving Home In Littlehampton

Not A Checklist For Moving Home In Littlehampton?

We could wright a giant checklist of the million and one things you need to think about when moving home… but we won’t there are 100s of these online but not many with contact information you might need so we did that.

How much is the council tax?

Valuation bands

Most dwellings are subject to Council Tax. There is one bill per dwelling, whether it is owned or rented. Each dwelling is allocated to one of eight bands according to its open market capital value as at 1 April 1991. The bands are as follows:

  • Band A – Up to and including £40,000
  • Band B – £40,001 – £52,000
  • Band C – £52,001 – £68,000
  • Band D – £68,001 – £88,000
  • Band E – £88,001 – £120,000
  • Band F – £120,001 – £160,000
  • Band G – £160,001 – £320,000
  • Band H – Over £320,000
To find out how your property has been valued, check your band or appeal against your banding, visit the valuation office website or call 03000 501501.

When do the bins get collected?

Follow this link & enter your postcode to find out when your bins need to go out – http://www.arun.gov.uk/collection-day-search-information

 

Estate Agents In Littlehampton

Leaders Littlehampton – 01903 890627
Martin & Co – 01903 716622
Leaders Rustington – 01903 786666
Michael Jones Estate Agents – 01903 850850

Mortgage Advice

Eddison Wells is a mortgage brokerage & we have qualified brokers who can help you find a mortgage product based on your needs. So if your looking for a mortgage broker in Littlehampton we can help with that services

 

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Offset mortgages & what they might save you

Offset mortgages are suitable for buyers with large, stable savings. The amount you have saved is subtracted from the amount you owe on the mortgage, and interest is calculated from this reduced sum.

For example, if you have £150,000 in mortgage debt but £50,000 of savings, you would pay interest only on £100,000.

Usually, you still make monthly repayments based on the full amount, which will mean that you pay down the loan more quickly than you would otherwise.

Rates tend to be higher than on conventional mortgages, but for borrowers, with large savings balances, this can be cancelled out by the interest saved by offsetting.

According to Which? The consumer group, in June the average offset mortgage rate was 2.67pc. The winner is only slightly higher than the average two-year fixed rate, which is currently around 2.36pc.

The best rate currently offered by broker John Charcol is 1.79pc fixed for three years, from Accord Mortgages. This is available to borrowers with a 15pc deposit.

Some lenders will require you to take out a linked savings account.

 

How does it work?

Not all offset deals are the same. With Scottish Widows, for instance, borrowers have the option to reduce their monthly payments or pay down their mortgage more quickly.

Based on an example of someone borrowing £200,000 over 25 years with £25,000 in a linked savings account, the lender said maintaining full monthly repayments could reduce the term by seven years. Also save £46,440 in interest, while paying a reduced amount each month, reflecting the lower interest bill, could save £23,673 in interest and remove the mortgage two years early.

However, this is based on a high rate of 3.5pc for two years, reverting to 4pc after that.

If a borrower manages to get an ordinary mortgage and pay a lower interest rate for the term, they might do better to do this, partly because at the same time they will also be able to earn interest on their savings.

For example, someone who borrows £200,000 with an interest rate of 1.99pc and fees of £1,262, which is HSBC’s best-buy five-year fixed rate, would have monthly repayments of £852 and a total interest cost of £54,412 over 25 years.

If they took out Scottish Widows’ five-year fix at 2.39pc with fees of £1,499, they would have slightly higher monthly repayments of £893 but a significantly lower total interest cost of £48,125 if they used the offset facility and had their £25,000 linked savings.

  • Best fixed-rate mortgages: Two, three, five, and ten years

However, this benefit would have to be weighed up against the interest they could have earned elsewhere on their savings. Sitting in a bank account paying 0.9pc – currently a good rate – it would make £6,139 over the 25 years, making the costs equal.

At the lowest rate currently available – HSBC’s 0.99pc, with fees of £1,499 – the straightforward mortgage is the  winner, costing more than £20,000 less in interest and reducing monthly repayments by £150.

 

Who does offsetting work for?

It’s best for people with large savings balances who don’t mind earning interest.

It can also be suitable for families, where parents or grandparents can use their savings to help a child keep their monthly repayments down.

The mortgages are also suitable for people who receive large bonus payments, or who are self-employed and spend the year building up a pot of money to pay a tax bill.

Andrew Montlake, of mortgage broker Coreco, said that as a test borrowers should check that they have at least 15 to 20pc of their mortgage in savings. Below this, the marginally higher rates mean it may not be worth it.

Offsets can also be useful for higher and additional-rate taxpayers because you are effectively putting interest earned on your savings towards your mortgage tax-free.

Since April this year savers have been able to earn a set level of interest before paying any tax on it. For basic-rate taxpayers, this is £1,000. However, additional-rate taxpayers have no personal savings allowance, and higher-rate taxpayers have only £500, which could be outstripped relatively quickly on a large savings balance.

An offset mortgage account allows savers to “earn” this interest tax-free.

 

What are the disadvantages?

Rates tend to be higher than on other mortgages, by an average of around 0.2 percentage points, although compared with the best-buy fixed rates the gap may be more like 0.4 or 0.5 percentage points.

Offsetting also means that your money won’t earn interest in the traditional way. The reduction of tax on cash savings, through the introduction of higher Isa allowances and the personal savings allowance, means there is less of a tax advantage to offsetting.

There is less choice available in the offset market, so you might not be able to get terms that are entirely suitable – for example if you want the security of a fixed rate, this may be difficult.

ArticleSourced: http://snip.ly/1bug6#http://www.telegraph.co.uk/personal-banking/mortgages/how-much-could-you-save-by-switching-to-an-offset-mortgage/