Offset mortgages hampered by lack of savings

12 December 2003
The take-up of offset mortgages is being hampered by a lack of savings amongst potential customers, a new survey released today shows.

However, mortgage buyers are getting more choosy, with prospective customers in 2004 requesting quotes from an average off five lenders, compared to just four in 2001.

The study has been carried out by financial services research group MAPA International, and shows that while many more people would be interested in offset mortgages (70 per cent of respondents), the lack of savings to make them effective - and the attractiveness of fixed-rate mortgages during a period of low interest rates is depressing demand.

Mark Pavan of Mapa International commented, "Consumers are becoming more specific about what they do and don't want. Lenders will have to continue to innovate to persuade them of the benefits of buying a bundled mortgage product such as an offset mortgage.”

Nearly a third of those question by MAPA also said that they would consider getting a mortgage quote from the Internet.