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Offset mortgages growing

5/07/2007

In value 60 per cent of all offset deals were in conjunction with intermediary sales, leaving an increase from 45 per cent during 2005, many brokers stated that they saw 100 per cent annual growth over a time span.

CML statistician, report author Phoebe Zhang said the research indicated provider investment in consumer education during the first offset deals which were launched 10 years ago has paid off, however this was a long term investment.

Zhang added;’ Intelligent Finance and Woolwich have both spent a lot on financial awareness,’

‘The market is becoming more competitive but if the price of offsetting went down it would also boost take-up. Lenders would like offsetting to be more mainstream.’

Offset mortgages are normally used when remortgaging, final results indicated the average age of a borrower to be in there 40’s.

CML stated that older clients should think about whether the total amount of cash required to complete offsetting economic could be greater used in an investment vehicle.


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