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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

mortgage.

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

payments.

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

lifetime.”

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