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06 January 2006
Brits have been urged to consider that they may be able to save money by switching to an offset mortgage.
An offset deal is one which subtracts the value of a customer's current and saving accounts from a home loan - meaning that smaller interest payments are incurred and money saved.
Intelligent Finance claims that nearly 33 per cent of the nation's households would be better off with an offset mortgage - an increase on last year's predicted 25 per cent figure.
Nick Robinson, the firm's managing director, explained: "Datamonitor has revealed that the offset and current account market grew by over 63 per cent every year between 2000 and 2004 and predicts that these products will account for 30 per cent of all UK secured lending by 2009.
"One of the main reasons for this growth is likely to be a greater understanding amongst brokers and clients on how offset can provide benefits."
It is thought that the average amount saved by switching to an offset product would be around £312 each year.
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