The offset mortgage is gaining in popularity, with figures showing that 170,000 offset mortgages being taken out in 2006.
The Council of Mortgage Lenders (CML) believes that this good for the industry and lenders are offering different products to meet consumer demand.
Our view
Many people have realised that they do not have to move their money on a regular basis to get a better rate for lending and savings. Mortgage interest rates are generally higher than those for basic mortgages but with effectively zero interest charged on the debt where you have savings in a matching account. This is technically a gross tax free interest return and is very tax efficient.