City Mortgage

City Mortgages are now available for those borrowers wanting a mortgage of Ł500,000 or more.

Click Here for a city mortgage quote or to have a F.S.A. regulated mortgage broker contact you to discuss.

City high-fliers expecting big bonuses either this year or next may want to consider the new "city mortgage" launched this week, which allows the borrower to offset their savings or bonus against the mortgage.

Offset mortgages have increased in popularity, since their inception a few years ago, mainly because of the reduced interest payments that can be achieved by the offsetting facility, and are particularly attractive to borrowers with large sums to offset.

The advantages of the city mortgage to the typical "city borrower" who enjoys large lump sum bonus payments is obvious, as such sums would attract taxation on the interest earned if left in a savings account, but reduces the mortgage interest payable to the lender if used as an offset facility instead.

When borrowers receive their bonuses they can offset them against the loan to reduce their payments or they can redeem part of their mortgage without penalty.

The new "city mortgage" is an offset mortgage offered by the Woolwich, however some commentators have remarked that it might not suit everyone, but any good mortgage broker should be able to find a few alternatives that might be more appropriate.

This what Melanie Wright, writing in the Telegraph money section had to say:

"The 'City Mortgage' is a discount tracker deal, which allows borrowers to offset their savings, or bonus, against their homeloan. The rate is 0.51pc below the bank of England base rate, currently 4.75pc, until July 2007, after which it reverts to the base rate plus 0.49pc. It is only available to those wishing to borrow Ł500,000 or more.

Melanie Bien, associate director at independent mortgage broker Savills Private Finance, said: 'This is a pretty good rate but the real fly in the ointment is the term, as it only applies until July 2007. Borrowers will have to be prepared to remortgage within 12 months and could potentially have to pay another high arrangement fee for the privilege. The alternative is to revert to the bank base rate, plus another 0.49pc, which is not nearly so attractive.

"Having said that, the Woolwich offers the best offset products on the market in terms of flexibility so if you are after true flexibility, this is the product for you. There are no early repayment charges at any time.

"The arrangement fee is quite high at Ł1,499 but given the potential size of the mortgage this is relatively unimportant and may be worth paying to achieve this low rate of interest, combined with the flexibility."

To find out more about this, and other offset mortgage deals currently available, click here and send your details.

A mortgage broker regulated by the Financial Services Authority will get back to you very quickly, and talk you through the options and figures.

City Mortgage - available now by clicking the link above.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

Mortgage Arrangers, Equity House, 225 Hatherley Road, Cheltenham Gloucestershire GL51 6HF

Telephone: 01452 741459

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