According to research conducted by the Norwich & Peterborough Building Society, many people believe that offset mortgages are not for them. The survey of 150 people revealed that whilst almost 80% knew what an offset mortgage was, less than 40% thought it would be of benefit to them.
Our View
Offset mortgages can appear complicated to consumers, which is probably why they are missing their target market. The only way to improve the knowledge of consumers is through education and simpler literature.
We are certain that many more homeowners would opt for offset mortgages if they actually understood what it meant to them in pounds and pence. Comparing the difference based on various scenarios and mortgages would definitely help. Over time and as knowledge grows, we believe that offset mortgages will become more popular.