Offset mortgages grow to £29bn in 2006

According to the research carried out by CML, 170,000 offset mortgages were taken out last year. Between April 2006 and March 2007, year-on-year growth for offset mortgages was 49% by value, compared with just 15% for non-offset lending. Offset mortgages combine mortgages and saving in a single account, allowing the mortgage to be offset by a credit balance, which can reduce the overall interest charged. Offset mortgages also offer additional benefits to borrowers such as savings help to reduce mortgage interest costs. This helps mitigate the effects of interest rate rises on monthly r...