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Offset deals to double by 2008

Current account mortgages and offset deals look set to boom with independent reports suggesting the market will double by the year 2008.

Research by independent market analyst Datamonitor suggests the CAM and offset markets currently account for £22bn of gross advances in the UK mortgage market.

It adds that the products will become even more popular with the introduction of &#39family offset&#39 mortgages, which allow parents to link their savings to their offspring&#39s offset mortgage account thus allowing the latter to pay less in interest. The Woolwich was the first lender to offer a family offset and the Newcastle has since launched its guaranteed offset mortgage.

Karina Purang, financial analyst at Datamonitor and author of the report, says: “Family offset mortgages are a breath of fresh air for firsttime buyers. For those parents who have savings in the bank and want to help their children get onto the property ladder, this is a good way to go.”


Better in the promise than in the execution

Kevin Paterson, managing director, Park Row Independent Mortgages. Recent research indicates that a third of IFAs believe that offset mortgages will represent more than half of all borrowing within five years and blame the lack of recent growth in this market on lack of customer understanding. The only thing this demonstrates is that IFAs have […]

Service winners at inaugural awards

Last month saw Pink Home Loans&#39 inaugural Service Awards, held in association with Mortgage Strategy. Lenders and brokers were recognised for their efforts in front of 230 guests at Birmingham&#39s Botanical Gardens. Lender winners included Intelligent Finance – flexible lender of the year; Northern Rock – equity release lender of the year; GMAC – sub-prime […]

Darlington selects Lynx banking programme

Darlington has selected Lynx Financial Systems&#39 Summit programme for its core banking systems. Summit will manage the society&#39s full mortgage application processing and post completion administration. The company says it will allow end to end processing throughout the life-cycle of the mortgage, beginning with any quotation, through to application and completion stages and followed by […]

Just 6% of FTBs understand mortgages, says MCCB

Only 6% of first-time buyers have a good understanding of mortgages, research from the Mortgage Code Compliance Board has revealed. With just a year before the FSA takes over the regulation of mortgages, the MCCB says the research highlights the importance of high quality mortgage advice to consumers. Conducted from a sample of FTBs, it […]


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