27 Oct

Offset mortgages grew over Q2, says report

Offset mortgages grew over Q2, says report

A report has shown that the number of offset mortgages taken out by people purchasing houses for sale in the UK grew during the second quarter of 2010.

According to the Council of Mortgage Lenders, 11 per cent of all new home loans sold during the three-month period were offset mortgages.

Comparatively, 8.5 per cent of new home loans were offset mortgages during the same period in 2007.

Since then, First Direct saw its offset mortgage balances rise by more than £10.5 billion, representing a growth of its market share of offset mortgages sold from 4.5 per cent to 22.2 per cent by the second quarter of 2010.

Senior mortgage product manager Richard Tolchard said that offset mortgages can help people purchasing houses for sale in the UK to get good loan rates and make more of their savings.

"For those with savings and need of a mortgage an offset really is a no-brainer," he commented.

Earlier this week, the British Bankers' Association reported that net mortgage lending grew by 3.9 per cent in September 2010 - an increase from a growth of one per cent the previous month. ADNFCR-1222-ID-800160645-ADNFCR

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