In its report, entitled ‘Offset and Current Account Mortgages – The Way Forward’, Defaqto revealed that offset mortgages had established themselves in niche sectors, but had yet to fully establish themselves in the wider market.
David Black, head of banking at Defaqto, argued that offset mortgages had a valuable place in the market, and urged the industry to give more prominence to
the facility.
He said: “Offset and current account mortgages have a lot going for them and could appeal to a fairly wide section of the community. They are well suited to those with some savings who do not want the hassle of changing mortgages every few years but need to know their mortgage arrangements still offer good value.”
He added that with the likely ending of full service current accounts, providers which do not impose charges would be able to highlight additional savings of over £100 a year.
Sonny Joannou, IFA at Anand Associates, said: “There are still a lot of mortgage intermediaries who have not embraced knowledge of offset mortgage deals. There is a lack of understanding too, but it is more apathy than anything else. The market has still yet to evolve fully. Mortgage lenders need to create more public awareness so consumers are have knowledge of these products in the first place.”
