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Britannia dedicated to the offset market

Britannia Building Society is set to enter the offset market with a product called the savings mortgage which offsets a dedicated savings account against the customer&#39s mortgage.

The society says it has set up the product after research found that consumers wanted simplicity from an offset mortgage.

Britannia says offsetting against a separate savings account avoids the aggravation of changing current accounts.

There are no fees for arrangement, admin or valuation. The mortgage will track the Bank of England base rate for the life of the loan.

Britannic has yet to finalise the mortgage&#39s interest rate but says it is likely to be 4.6 per cent at launch. It says a customer with a 20-year repayment mortgage of £100,000 and savings of £10,000 could pay off their mortgage two years early, saving £15,000.

Head of direct channels Tim Franklin says: “The savings mortgage offers customers simplicity which is what they told us they wanted. Not only will it be competitively priced but it also gives all the benefits of a flexible mortgage while making the most of customers&#39 savings.”

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