Growth in popularity of offsets

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Broker Your Mortgage Decisions has reported an increase in demand for offset mortgage deals over the second half of 2010.

Statistic released from the Council of Mortgage Lenders for Quarter 2 2010 show offset mortgages made up almost 11% of new mortgages in Q2 2010, compared to 8.5% in 2007. Your Mortgage Decisions expects this trend to continue, especially if the Bank of England base rate stays at its historic low.

A recent survey carried out by First Direct also found that on average 64% of mortgage payers have heard of offset mortgages. However, Your Mortgage Decisions suggests that advisers must continue to work hard to educate relevant clients on the potential benefits offered by offsetting.

Dominik Lipnicki, director at Your Mortgage Decisions, said: “The popularity of offset has grown as increasing numbers of borrowers are having to think more holistically about their financial situation and the long-term value of particular mortgage products. It is also fair to say that borrowers have become better educated on how best to manage their finances in order to keep the potential costs of interest rate exposure down and this is in no small part down to the quality of advice being administered.

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