A new offset
mortgage has been launched by Yorkshire Building Society, which allows
homeowners to link their
loan to a friend or relative's
savings account.
As such the mortgage lender's Offset Plus deal reduces the mortgage rate on the loan by reducing the interest earned on the savings account.
Under the scheme
borrowers then have the choice of reducing their monthly payment, or pay the usual amount and reduce the term of the deal.
The new mortgage scheme allows up to three people to have their savings linked to any one deal. One of these accounts must belong to the mortgage holder.
The
mortgage lender hopes that the deal will be particularly attractive to
first time buyers and will make it available from mid-September.
The deal should also attract parents who want to help their
first time buyer children but cannot afford to pay a lump sum.
