mortgages introduce free Unlimited banking
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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