The tax efficiency of offset mortgages could attract increasing numbers towards the products.
Paula John, editor-in-chief at Your Mortgage, said she is surprised by the small number of people in the UK who have so far taken advantage of the home loan option.
The industry figure described the deals as the “way forward”, claiming many individuals in the mortgage industry have taken out the arrangements themselves.
Ms John explained the agreements provide the most tax efficient way of making use of any excess income, observing people are effectively saving the cash without paying any tax on it and not having to “lift a finger” to do so.
She stated: “You can also draw down on that, borrow it back and use that money whenever you actually do need it.”
The expert went on to point out that consumers who overpay their mortgage are not kissing goodbye to the money through this approach.
Her comments come after Ray Boulger, senior technical manager at John Charcol, noted the majority of mortgage rate alterations in recent months have been escalations, with a small number of lenders going in the opposite direction.
