A third of all homeowners would get the best mortgage rate from an offset mortgage, claims Intelligent Finance.
Offset mortgages allow homeowners to count the value of their current and savings accounts against the value of their home, cutting the interest payable and saving on repayments.
Intelligent Finance says that 25 per cent of all homeowners could have saved money over the course of 2005 with an offset mortgage.
Since then, changes in the market mean that 33 per cent would now be better off switching. On average Intelligent Finance estimates that homeowners could save £312.
“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,” said Nick Robinson, managing director of Intelligent Finance.
“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.”
© Adfero Ltd