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Offset mortgages introduce free Unlimited banking

14/03/2007

Analysts are considering to divert people to an offset mortgage deal, this is simply due to high charges with current accounts.

Current account mortgages or Offset mortgages connect cash in bank accounts to mortgage debt, looking at people charged little interest via their home loan.

It has been put forward by experts that current account charges generate into more then offset mortgages, this may have a greater advantage than.

David Black, head of banking said, "With the likely ending of free full service current accounts, customers will potentially be able to save around £120 or so a year by having a current account [mortgage] or offset mortgage,"

"They are now increasingly regarded as mainstream products and we believe that providers will start to target new markets such as buy-to-let investors or those with lumpy income streams."

Today on the market there are 36 firms which offer a offset mortgage or a current account mortgage, the products within offer up to 198 different options.

Learning this type of mortgage can be beneficial however Defaqto feels that customers will change to a offset mortgage deal if current accounts carry on rising.


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