One in three homeowners would be better off switching to an offset mortgage, new figures show.
These allow homeowners to offset the money in their current and savings accounts against the cost of the home loan. They then only pay interest on the balance, thus making smaller repayments.
Intelligent Finance estimates that a third of households would save over 300 a year by moving to an offset tracker product.
Last year, around a quarter of homeowners would have benefited from making the move.
Nick Robinson, managing director of Intelligent Finance, said: “Datamonitor has revealed that the offset and current account market grew by over 63 per cent every year between 2000 and 2004 and predicts that these products will account for 30 per cent of all UK secured lending by 2009.
“One of the main reasons for this growth is likely to be a greater understanding amongst brokers and clients on how offset can provide benefits.”
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