The announcement comes after the Council of Mortgage Lenders (CML) revealed significant growth in the offset market during 2006 and said the market looked set for further expansion in the future.
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The lender claimed the £500 cashback could be worth much more over the course of the mortgage, due to the interest accrued if the money was left in the current account.
Chris Pearson, director of intermediary mortgages at Royal Bank of Scotland, commented: “Although the benefits of current account mortgages are well known to many intermediaries and their clients, there is still a huge potential for growth in this sector. The £500 cashback offer is not only a great deal for clients, it also clearly illustrates the value it can have if saved into a current account mortgage.”
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Also accompanying the launch, ‘The One Account’ is to be given its own dedicated sales force, to help provide special focus on offset mortgages.
Simon Chalk, mortgage planner at Mortgage Portfolio Services, believed that offset mortgages still had a way to go before it could establish itself as a mainstream product.
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“I think offset will grow but only at the same time as other flexible mortgages. It is a great idea in general but they favour higher rate taxpayers and those who have large amounts of cash in accounts so I’d like to see some innovation. Also, I dislike current account offsets as accountants often can’t get their heads round the annual statements.”
