Clerical Medical is launching an offset commercial mortgage to the IFA market and says it could enter the dom-estic mortgage market in the future.
The Smartfinance offset mortgage from Bank of Scot-land will be offered through Advice Matters' intermediary support programme.
The mortgage is available at between Bank of England base rate plus 1.5 per cent and base rate plus 2.5 per cent depending on the loan to value, which is available up to 75 per cent. Standard commission is 0.5 per cent of the amount drawn.
Clerical believes the product is ideal for self-employed business clients and says the average commercial loan amount of £150,000 is higher than the average residential mortgage, which would give an average commission payment of £750 per loan.
Clerical says it is offering the product rather than one of HBOS's five mortgage brands because it is the closest to IFAs.
It says it might look at the domestic mortgage market in the future.
Market development manager Charles Evans says: “Smartfinance will be a useful addition to the range of products and services that Clerical Medical offers to its corporate clients as well as providing them with a product which can be utilised to develop their own businesses further.”