25-06-2007
Popularity of offset mortgages growing
Offset mortgages are becoming increasingly popular, new data suggests.
According to figures released by the Council of Mortgage Lenders (CML), the number of borrowers opting for an offset mortgage last year resulted in the taking out of 170,000 offset products.
The number of offset mortgages taken represented seven per cent of total mortgage borrowing for 2006.
"Today's research reflects the dynamic nature of the UK mortgage market," said Phoebe Zhang, the research's author and a statistician with the CML.
"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," she added.
In terms of value, between April 2006 and March 2007, the offset mortgage market grew by 49 per cent.
The CML is a UK-based trade association.