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 'family offset' mortgages, which allow parents to link their savings to their offspring's 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.”