The rate is variable and is discounted by 1.44% from the Society’s standard variable rate to 31 March 2009, with the same interest rate effectively being applied tax free to the savings element of the account.
Offset mortgage products are estimated to represent between 15% and 20% of new net lending, with over 20 providers now offering this type of product. Coventry Building Society has recently conducted an online web poll which showed that 29% of respondents were currently considering taking out an offset mortgage, clearly indicating a growing appetite in this important market.
“There is strong evidence to suggest that offset mortgages are becoming increasingly popular”, said David Stewart, operations director of Coventry Building Society.
“The combination of having a flexible mortgage, effectively earning tax free interest on your savings, and reducing the total amount you repay, is making people think seriously about the real benefits this type of mortgage can bring to them. Despite this, our own online web poll showed that 21% of respondents do not know what an offset mortgage is – at the Coventry we have trained advisors who will be able to explain exactly how this type of mortgage could work for them” he added.
Borrowers wanting advice about offset mortgages or wishing to apply should telephone the customer service centre on 0845 7665522 or call into any of the Society’s 50 branches.
