Charcol is offering a mix and match mortgage which combines a five-year fixed rate with a lifetime offset tracker.
The five year fixed rate is available at 4.8 per cent, 6.1 per cent APR. This can then be mixed with the tracker with initial pay rate of 4.65 per cent, 5.4 per cent APR.
Only one arrangement fee is payable. The fixed rate element of the mortgage allows up to 499 per month to be repaid with no early repayment charges. The offset savings account can be operated by phone, over the internet or in any branch of the lender, Newcastle Building Society.
A family offset facility is also available, allowing family members to use their savings to rduce the interest paid on the mortgage. This facility can help with parents wishing to help their children reduce their monthly mortgage payments.
Charcol senior technical manager Ray Boulger says: “The mix and match feature allows borrowers to benefit from the security of the market leading five-year fixed rate, but still optimise the use of their savings by choosing to have part of their mortgage on the offset tracker to obtain maximum flexibility. The mix and match facility is optional and borrowers can choose to have the whole mortgage on either the fixed rate or the offset tracker. If borrowers do opt to mix and match, they have complete freedom to split the fixed and offset tracker parts in whatever proportion they like, although this cannot be changed after completion.”