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Intelligent Finance says 1 in 3 households better off with offset mortgage

06 January 2006
One in three UK households looking for a mortgage might be better with an offset, research from Intelligent Finance has found.

The lender said based on its research one in three UK households could save an average of £312 a year on their mortgage simply by taking an offset tracker 95 product with Intelligent Finance and moving their current account, direct access savings and ISAs to the bank.

Nick Robinson, managing director of Intelligent Finance said: "Datamonitor has revealed that the offset and current account market grew by over 63 per cent every year between 2000 and 2004 and predicts that these products will account for 30 per cent of all UK secured lending by 2009.

"Our offset sales performed particularly strongly towards the end of 2005 with citing Intelligent Finance as the second most popular mortgage lender in October."

During the research to determine if a household would benefit from an offset mortgage the lender calculated the individuals net interest position over the first year with their mortgage savings and current account balances held separately in traditional accounts and compared this result with offsetting balances with Intelligent Finance.

Mr Robinson also said that Intelligent Finance would be running a marketing campaign from January 8th stressing the one in three message.

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