The deal, funded by Accord Mortgages, has an interest rate of 3.99% (5.3% APR) fixed to 31/7/05.
The product allows borrowers to put their savings into a separate offset account and use the money to reduce the interest charged on their mortgage balance. Whilst interest will not be paid on the offset savings account itself, the money will in affect work harder by reducing the borrowers mortgage repayments. In addition, by paying any extra money they may have into the offset account, borrowers will not only increase their savings nest egg but their mortgage repayments will be reduced further.
David Bitner, head of product operations for The MarketPlace, said: ”Offset mortgages have grown in popularity over the last few years but borrowers have had to pay a not insignificant premium rate for this. With this deal this premium has all but dissipated now, which is great news for borrowers.”
