Using data from a MORI survey the lender has worked out that the average borrower has £9,300 in savings, which means that they could lose £180 as interest rates are reduced to their lowest level for over 40 years.
However, if borrowers switch to an offset mortgage, they could save around £19,000 and pay off their mortgage three years early, while earning tax free interest on their savings.
The lender is predicting that over the next 12 to 18 months the offset mortgage market could have over one million customers, which is around 7 per cent of the market.
