IF launches offset products

The deals, which allow unlimited overpayments without penalty and have no higher lending charge, are available over three years on remortgages and two years on purchase.

The purchase products are priced at 0.29 per cent above Bank Base Rate (BBR) and 0.34 per cent above BBR, with arrangement fees of £2,999 and £1,999 respectively, and are available on loans between £500,001 and £2 million up to 85 per cent loan-to-value (LTV).

For remortgagors, there are two-year trackers priced at 0.34 per cent above BBR and 0.44 per cent above BBR, with arrangement fees of £1,499 and £799, and maximum LTVs of 90 per cent and 75 per cent respectively.

Loans are available between £25,001 and £500,000, with valuation fees refunded once the deal is completed.

All products have a 4 per cent early redemption charge for the first two years.

Daniel Clayden, director of Clayden Associates, believed the current turmoil in the investment markets meant offset was a good short-term option.

“I like IF and it generally has reasonable rates. The argument is always whether it is better value to offset or keep the accounts separate and remortgage on a regular basis.

"However, with the market conditions, if you are looking for a low-risk investment then it is a good option. You don’t have to offset for the term of the mortgage, so putting the cash into an offset gives a guaranteed return.”

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