A third of mortgage borrowers could be in a better financial position should they choose to remortgage to an offset mortgage deal, according to one mortgage expert.
Heather Scott, head of communication at financial services provider Intelligent Finance, says despite the fact that offset mortgages only entered the market about five years ago, they are "definitely making an impact".
Offsetting allows mortgage holders to reduce the interest on their mortgage by offsetting it against individual savings accounts and current account savings.
"It is a relatively young product and it takes time to educate customers about the benefits," Ms Scott says.
Last month, Intelligent Finance, a division of Halifax, said the pricing of offset mortgages has "come down dramatically" over the second half of 2005.
The managing director of Intelligent Finance, Nick Robinson, said there is "a great demand" for this type of mortgage.
"They are a lifestyle tool that provide you with flexible control of your finances," he added.
Mr Robinson went on to say that increasing numbers of mortgage borrowers are choosing to benefit from offsetting and that these mortgages are becoming more "mainstream" as new mortgage lenders enter the market.
This echoes Datamonitor research published in October last year which predicted that offset mortgages will account for 30 per cent of the UK's total secured lending by 2009.
Offset mortgage benefits discussed
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