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&#39Loan paid two years early with offset&#39

Intelligent Finance and Standard Life have produced figures aimed at

showing borrowers the benefits of combining their savings and


IF says someone with an offset mortgage will on average pay off their

loan two years early.

Its figures show that with average house prices currently

£125,555, a borrower with savings of £6,219 taking out an

offset mortgage with a loan to value of 71 per cent will save

£12,579 over the term of the loan, equivalent to two years&#39


Standard Life says in the eight months since it laun-ched its

Freestyle Offset, customers have saved a total of £0.5m in

interest payments.

It says borrowers who offset their loan against their savings are

likely to be more affluent and mature, with the average age being 41

compared with the average for other customers being 37.

Standard says offset customers tend to have highervalue mortgages,

with the average being £122,000 compared with £103,000 for

other borrowers.

IF sales and marketing director Ian Jeffery says: “Houseowners always

have a feelgood factor when they see the value of their investment

increasing. Offset mortgage holders have the additional bonus of

paying off their mortgage early. This presents all sorts of

opportunities, including possible early retirement or the trip of a



Get on route 166

The fears surrounding CP166 are understandable, as inefficientproducts and processes will be revealed to all and the changes to thesystem will force companies to drop products that incur high chargesin favour of those that operate more efficiently. The wait-and-seeattitude, with many organisations holding on to see what theircounterparts will do, could be a significant risk. […]

Derbyshire launches first time buyer mortgage

Derbyshire Building Society has launched a first time buyer mortgage to help home-buyers get a foot on the housing ladder. It is a three-year stepped discount with a reduction off its standard variable rate, currently 5.59 per cent, of 2.40 per cent in the first year, 1.44 per cent in the second and 1.00 per […]

82 IFAs gain new pension certificate

The first group of candidates for the new IFA occupational pensionscheme qualification got their certificates last week.Eighty-two IFAs passed the new financial adviser certificate intrustee pensions knowledge exam set up by the Pensions ManagementInstitute last September. Only four advisers failed the exam.The qualification is des-igned to allow advisers to demonstrate thatthey fully understand the duties […]

Duncan&#39s Discounts

Investment Editor Chris Duncan sets out some of the best deals in theIsa market Gartmore is offering a 2 per cent discount off the initial charge oninvestments into its focus funds until April 30. The initial chargeis now 3 per cent. The fund manager is also reducing the initialcharge on its cautious managed fund to […]


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