As savings interest rates remain at an all time low, Offset mortgages could be a solution for many of your customers.
What is an offset mortgage?
This type of mortgage allows customers to combine their savings and mortgage account enabling them to reduce their monthly payments or shorten the term of the mortgage.
The interest calculation is based on the total amount borrowed minus however much is held in the linked savings/bank account.
As with standard mortgages there is a range of fixed and variable rate offset deals.
An offset mortgage could suit a whole range of customers including those:
Scottish Widows have produced a document to help you advise customers with strong growth in personal deposits.
Read the document in full here.
Plus their research entitled 'Earn Mortgage Rates on Your Clients Savings' can be seen here.
Tools to help:
An Accord survey showed that 94% of brokers questioned believe that a better range of tools from lenders could help them to overcome customer misconceptions about Offset mortgages.
To make it easier for you here are the links to the Offset pages and Affordability Calculators from those lenders active in Offset.
Melton Offset Page
More information can be found here:
This website is designed to give professional financial advisers information and tools that they can use to help control and develop their business and should not be relied upon by private investors or any other persons.