Barclays offset mortgages 'brilliantly simple'

Date:Wednesday 2nd June 2010
Author: Susanna Kavka

It is no surprise that offset mortgages have caught on, says a spokesperson from Barclays, since the concept of them is brilliant in its simplicity.

Head of mortgages at the firm Andy Gray made his remarks after the company revealed it is ten years since Woolwich introduced the first home finance deal of this type in the UK.

He explained people are able to knock years off their mortgage term thanks to this style of payment, with the products helping taxpayers in most salary brackets, according to the institution.

Barclays offset mortgages could be especially suitable for higher-rate taxpayers, the self-employed, Isa investors and anyone who has five per cent of their mortgage balance in a savings account, revealed the group.

Mr Grey added: "People just manage their current account, savings and mortgage separately as they have always done and in the background all the components are added together every day."

Last month, the Fair Investment Company claimed it "makes sense" to offset a mortgage if savings are not offering a competitive return.