The lender is giving clients who arrange their mortgage through a broker the offset option, allowing the consumer greater flexibility and saving them on the administrative costs to set up a structure of this nature.
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Fred Sharp, head of intermediary business at Clydesdale Bank, said: “The option to offset used to come with a higher interest rate, which meant borrowers had to choose at the outset whether they might benefit from this flexibility. It is a reflection of just how mainstream offsets have become and our determination to be as competitive as possible that we are now able to offer these features from the outset and without any premium.”
Coinciding with the launch of the offset option, Clydesdale Bank is also increasing its maximum loan-to-value on properties up to £1million from 85 per cent to 90 per cent.
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Sharp said the changes came after mortgage intermediary feedback and were available on both purchase and remortgage business.
Darren Pescod, managing director at The Mortgage Broker Ltd, believed offset was a good option to have.
He explained: “Clients like knowing they have this kind of option within the product so it’s great for them, especially as their circumstances may change down the line. I don’t think it’s for every lender though as it’s a lot of work to do. It’s a good unique service provision for Clydesdale Bank, but I don’t see others like Halifax following them.”
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