OFFSET MORTGAGE SUCCES

As CML releases numbers for 2006, the success of the Offset mortgage is evident. The number of offset mortgages has surges to 170,000 in 2006, registering a growth of 49% and achieving a worth of £30bn.

After the initial success of the mid 90s, when the system was first introduced to the UK, we now see a strong comeback. This is mostly owed to the rise in interest of fixed-rate mortgage deals, which shed new light to the flexibility of offsetting. Consumers now see the real advantage of subtracting savings from the base calculation amount to which the interest applies.

As fixed interest rates continue to rise, in an attempt at toning down the market, offsetting will probably continue it’s upper trend and deserves a better look as it has proven to be less complicated than borrowers have thought in the past.