In a poll of brokers by Mortgage Solutions, more than half said a broader choice of offset mortgage product options would help them advise more customers about the deals.
We’ve certainly been doing our bit for a long time – in fact it was back in the Nineties we first offered offset products on residential mortgages. Almost 20 years on and we’re still very much switched on to offset.
Having consistently had a residential offset range of lifetime discounts and lifetime trackers, in 2016 we launched a Buy to Let offset.
We’re one of very few providers to do so, and at a rate that is competitive with non-offset products.
As well as boosting the tax efficient choices available into BTL (useful as the new tax regime for landlords is phased in), Hinckley & Rugby’s offset model provides the market with another novel feature.
Payment to the mortgage account
Instead of using the notional interest from the savings to reduce the monthly direct debit payment, it is applied as a payment to the mortgage account without tax deducted at source. Owner-occupiers and landlords alike can benefit from capital reductions to their balances as a result.
Brokers are very welcome to find out more about our approach – including our manual underwriting.
Hinckley & Rugby Building Society head of intermediary sales Carolyn Thornley-Yates.