Standard Life Bank mortgage feature provides "added value"

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Standard Life Bank mortgage feature provides "added value"

Tue 3rd Apr 2007

Standard Life Bank has launched a new offset feature on its two-year fixed-rated residential mortgage deals.

Upon maturity of the fixed-rate period, the new package allows consumers to benefit from any interest accrued from having money in the offset reserve, which currently has a rate of 6.76 per cent for loans up to 90 per cent loan-to-value.

No interest is charged on this facet of the Standard Life Bank mortgage, with significant savings being possible for savers.

The bank estimates that over 25 years, a homeowner could save some £72,217 on offsetting £18,000 in savings against a 25-year mortgage of £142,000.

Jackie Moran, head of sales at the group, said she expected a quarter of customers to take on the Standard Life Bank mortgage.

"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 added.

The Standard Life Bank mortgage possesses a booking fee of £699 and an offset arrangement fee of £99.

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