'Savings can be made' with first direct offset mortgages

Date:Wednesday 27th October 2010
Author: Susanna Kavka

Consumers could save cash by switching to first direct mortgages, according to a source at the firm.

Richard Tolchard, senior mortgage product manager, described how such home finance deals can "really make a difference".

He made his comments after statistics released by the Council of Mortgage Lenders showed more people are opting for offset arrangements, with this type of agreement making up 11 per cent of new mortgages in the second quarter of the year.

"We've always known how great the offset mortgage product is, so it's pleasing to see that the public are starting to realise it too," Mr Tolchard stated.

According to the company spokesperson, first direct offset mortgages can allow a customer to receive 4.4 per cent interest on their savings, while still getting a good home finance deal.

This month, the firm announced the launch of Beta Lab, which will allow clients to give feedback to the organisation regarding new products before they are fully rolled out.