The lender believes that two-thirds of Small to Medium Enterprises (SMEs) would consider changing bank for an offset mortgage, because over half think that their bank is making too much money by not offsetting credit on current accounts against commercial mortgage balances.
The mortgage allows SMEs to effectively pay base rate interest, currently four per cent, on their business current account to offset the interest costs of a commercial mortgage. The Business MortgageSaver mortgage will enable small businesses to access significant savings, as well as being flexible and offers daily interest.
New research commissioned by BoS Business Banking found that more than half of SMEs believe their banks are making too much money from them by not offsetting credit balances on current accounts against mortgage balances. And, more than two-thirds of SMEs (69 per cent) who do not currently own their property outright, would consider changing their mortgage to an offset product.
Colin Matthew, chief executive of BoS Business Banking, said: "Like the Competition Commission, we intend to leave no stone unturned in our drive to offer SMEs a better deal from their banks.
"Following hot on the heels of our ground-breaking interest-bearing Business Current Account and Business Bonus Account, Business MortgageSaver is the latest market-leading product in our armoury which is designed to shake off the inertia within the business banking sector."
