Standard Life introduces offsetting measure
(04 April 2007)

Standard Life Bank has announced an offsetting feature to its two-year fixed-rate residential mortgages which will be available to new customers currently in the application stage.

The feature has been introduced to allow Britons to offset their savings at the rate of interest which will apply to their mortgage.

Any benefits achieved will be calculated at the Freestyle standard variable rate of 6.76 per cent for loans up to 90 per cent of the loan-to-value and will be applied at the end of the fixed period.

Jackie Moran, head of sales at the financial provider, said she expected about 25 per cent of new customers to sign up for the feature.

"This is all about providing added value for our customers, who will be able to effectively enjoy the same rate of interest on their savings as on their mortgages," she said.

It was recently announced that the Royal Bank of Scotland had cut the fee for its offset mortgage from £245 to £100. The product allows consumers to offset their current account and savings balances against their mortgage.