Offset mortgage growth reported

Posted: 26 Jun 2007 11:20:27 GMT

There has been strong growth in the market for offset mortgages, the Council of Mortgages Lenders (CML) has reported.

There has been strong growth in the market for offset mortgages, the Council of Mortgages Lenders (CML) has reported.

According to the industry body, the total number of offset mortgages sold increased by 49 per cent between April last year and March this year.

This compares with a 15 per cent growth rate in the mortgage market as a whole.

2006 saw a total of 170,000 offset mortgages taken out - equivalent to £29.3 billion worth of lending and seven per cent of the mortgage market as a whole.

Borrowers appear to be attracted to the flexibility reduced mortgage interest costs that offset mortgages can provide.

"Today's research reflects the dynamic nature of the UK mortgage market," commented CML statistician Phoebe Zhang.

"Mortgage lenders are constantly developing new products to meet the needs of borrowers and the fact there are now 250 offset products available in the market illustrates this.

"Going forward, continued innovation by lenders will help to increase consumer awareness of offset products and expand the market potential for offsets in the future."

© Houseladder Ltd




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