Council of Mortgage Lenders stats show offset mortgages made up almost 11% of new mortgages in Q2 2010, versus 8.5% in 2007.
A recent survey carried out by the online bank found that on average 64% of mortgage payers have heard of offset mortgages, which it puts down to the low base rate making offsetting a more popular choice.
The lender says a typical offsetter now has savings equivalent to 20% of their mortgage borrowing.
On this basis, a homeowner switching to a First Direct offset tracker mortgage, tracking 2.09% above the Bank of England Base Rate (currently 2.59%) for the life of the loan, could cut down the length of a £150,000 mortgage by close to three years (33 months), and save £18,342 in interest payments over its lifetime.
Richard Tolchard, senior mortgage product manager at First Direct, said: "At a time when we need to make more of our savings, offset really can make a difference by enabling customers to get up to 4.40%AER gross on their savings as well as a great mortgage rate.
“For those with savings and need of a mortgage an offset really is a no brainer."
