Yorkshire Building Society is celebrating the ten-year anniversary of its offset mortgage offering and is using the milestone to promote the benefits of choosing this type of home loan .
According to the group, one-in-three of its mortgage applicants have a deal of this kind and Jemma Smith, mortgage product manager at the organisation – which has assets amounting to around £33 billion and more than 3.5 million members – claimed the arrangements give consumers the chance to save thousands of pounds.
The industry figure explained the company’s figures are evidence of the cost-effective properties of the agreements.
For an offset mortgage of £184,000 over a 25-year period, calculated alongside an average of 28 per cent savings, it was demonstrated that the loans could be paid off more than five years early, while savings of £62,852 in interest charges might be made.
Ms Smith observed now may be the right time to switch to this home loan option, “due to low savings rates you can get the best overall return on your mortgage and savings accounts, whilst maintaining full flexibility”.