Accord Mortgages has launched a range of five-year offset mortgages for borrowers looking to reduce their repayments or pay off their loan early.
The intermediary-only lender, which is part of the Yorkshire Building Society Group, has offered house purchase and remortgage customers a choice of 75 per cent, 80 per cent and 85 per cent loan-to-value offset mortgages across a five year term.
The range includes a 2.49 per cent offset at 75 per cent loan-to-value, and for those looking to borrow more, there is a 2.59 per cent option at 80 per cent loan-to-value, or available at 85 per cent is a 2.69 per cent deal.
Each mortgage comes with a £995 product fee.
Accord's offset mortgages became manageable online last month, giving borrowers direct access to their balance and statements, as well as enabling them to transfer money and set up standing orders.
Customers also have the choice to manage their account by phone or post.
David Robinson, national intermediary sales manager at Accord, said: “The demand for offset mortgages is increasing, especially as savings rates are offering such low returns.
“Offsets can be a great option for all types of borrowers, particularly those with a large amount of savings and people with irregular incomes or who benefit from bonuses. Higher and additional tax payers can also benefit from an offset, as they will avoid paying tax on interest earned on their savings.
Daniel Bailey, a broker with Derbyshire-based Middleton Finance, said the deal was a competitive offset mortgage.
He said: "Offset mortgages are a niche product and they do not work for everyone. They tend to work well for people who have savings they want to use to offset against there mortgage and for the self employed.
"If you are considering an offset mortgage speak to a local mortgage broker who can explain the pros and cons of an offset mortgage."
ruth.gillbe@ft.com
