Offset Plus will be available to all new and existing offset customers.
Borrowers using Offset Plus will be able to choose either to make net payments, freeing up cash to meet other costs, or make gross payments based on the full mortgage amount, which will result in the mortgage being paid off more cheaply and quickly.
It is likely that the benefits offered by Offset Plus will appeal most to first time buyers who will have to stretch themselves to get onto the property ladder. Research carried out by the Society showed that many parents of aspiring first time buyers wanted to be able to help their children on to the housing ladder, but were not in a financial position to give a lump sum hand out. Offset Plus gives them the opportunity to forfeit their savings interest, which can result in a huge financial benefit to the borrower.
As all Yorkshire mortgages allow over and under payments, Offset Plus is also likely to appeal to couples who are planning a family in the future. The benefit of additional savings in the offset account will allow the borrower to overpay initially and then take a payment holiday when maternity leave begins.
Rachel Court said: "We are just doing the final systems testing on this new feature on our offset accounts and are expecting to launch in mid-September. The benefits of Offset Plus for borrowers are clear to see and savers don’t need to worry about linking their money to the mortgage account as they will retain full control and will be able to make withdrawals and deposits at anytime in the usual way. "
