Some brokers have commented that consumers going direct to lenders are being 'blinded with science' and being advised to take out offset deals regardless of their circumstances.
So, Mortgage Strategy asks: Are borrowers being encouraged to take out offset mortgages despite the product not being suitable for them?
Mike Fitzgerald, Brentchase Financial Services
No. The majority of clients we put on offset deals have read about them and ask for these products. The proc fees may be slightly higher but I don't think the less astute are being advised to take up these deals.
David Ellingworth, Effective Financial Planning
Yes definitely. First it was self-cert and now it's offset. Tomorrow it will be some other product lenders will want to sell by the bucketload. Offset is a good product but you have to be the sort of disciplined person who checks their finances twice a week for the product to be suitable.
Kevin Morgan, EZI UK
No, this is not the case at all. I am a big fan of offset mortgages and feel brokers only recommend these products when appropriate. Even basic rate taxpayers with savings can be suited to these deals. Some brokers may have a problem with this as these deals are meant to be for life.
Tony Moss, Best Advice Financial Planning
Yes, I agree some people are steered towards offsets when they should not be. It is a complex product suitable for a minority of people. It would be better if people used their savings for a deposit rather than tying it up in an offset deal.
Jim Gillespie, Independent Financial Services
Less than 10% of our clients who take offset deals actually take on all the bells and whistles that come with the product. So if consumers are going direct to lenders and taking up all the aspects of the mortgage, the chances are they do not really want and will not use them.
Frank Hadley, Oak Financial Management
I do not understand how any broker can have a flavour of the month product when they will have to justify recommending these deals to the regulator. If the client has no money to offset, there's no point in them taking these deals.