UK borrowers could save £345 billion through offsetting

People in the UK with mortgages could save £345 billion collectively if offsetting was as popular as it is in Australia, according to a new report.

Research from Intelligent Finance (IF) has revealed that the average borrower in the UK could save almost £70,000 with an offset.

Cammy Amaira, director of sales at Intelligent Finance, said: "In Australia, the popularity of offset has a lot to do with mind-set. Australians value home ownership as much as we do, but they don’t want their mortgage to take over their lives, making offset their ideal choice."

He added that offset has "come a long way" in the past ten years in the UK but IF would like it to boom like it has in Australia and the "latest number crunching roves it''s definitely worth it".

Offset mortgages were introduced in 1997 and were initially thought of as a niche product.

IF was launched in 2000 and is a division of Bank of Scotland.

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