The trade body indicated that 170,000 offset mortgages were taken out during 2006, representing 7 per cent of all new lending. The offset market in 2006 was worth £29.3 billion, the CML stated, with year-on-year growth between April 2006 and March 2007 reaching 49 per cent, by value.
find out more about this weeks industry news
Commenting on the research, Phoebe Zhang, statistician at the CML, said:
“The research reflects the dynamic nature of the UK mortgage market. Lenders are constantly developing new products to meet the needs of borrowers and the fact there are now 250 offset products available illustrates this.
“Going forward, continued innovation will help increase consumer awareness of offset products and expand the market potential for the future.”
download our news ticker
Cammy Amaira, sales director at Intelligent Finance, said: “It is not surprising that the CML report shows offset mortgages have grown in popularity. With a rate-obsessed market and a trend of introducing headline-grabbing rates that are eroded over time, more people are now thinking holistically about their finances and about long-term value.
“People are understanding the benefits of offsetting and recognise that getting a competitive mortgage and savings rate doesn’t need to involve moving money every six months.”
