Offset

New research published today by the Council of Mortgage Lenders has
revealed strong growth in the number of people opting for an offset
mortgage. During 2006 170,000 offset mortgages were taken out, worth
£29.3 billion - equivalent to 7% of all new lending. And, the
year-on-year growth of offset mortgages between April 2006 and March
this year was 49% (by value) - compared to just 15% for non-offset
lending. Offset mortgages combine a mortgage and savings in one account

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Offset mortgages gain in popularity

New
research by the Council of Mortgage Lenders (CML) has revealed that
170,000 offset mortgages worth £23.9 billion, or 7% of all new lending,
were taken out last year. They grew 49% by value in the year to
end-March, compared with the previous year, while non-offset mortgages
grew just 15%. "Mortgage lenders are constantly developing new products
to meet the needs of borrowers, and the fact there are now 250 offset
products available in the market illustrates this," said CML
statistician Phoebe Zhang said. "Continued innovation by lenders will
help to increase consumer awareness of offset products and expand the
market potential for offsets in the future."

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N4 predicts broader outlook for AVM's

N4 Solutions has predicted that AVM technology will be much broader than just valuations providing brokers and lenders with opportunities for added value services.

Since launching AVM desktop valuations, N4 has been working on a number of developments which will see AVMs used in a much broader context including buy-to-let investment management tools for mortgage brokers, providing them with the same analysis tools as available to investment advisers, including portfolio management, capital appreciation and yield analysis.



N4 predicts that AVM technology will be utilised by anyone that has an interest in pricing either individual properties, such as end consumers and local authorities for personalised rates calculations, through to portfolio managers for more accurate securitisation modelling.



David Wiseman, consultancy director, N4 Solutions, says: “Much of the current debate is focused on the short term implication of AVMs, with little regard for what they could mean for the industry.



“We see a very real opportunity for brokers who specialise in buy-to-let to offer portfolio management facilities, which will not only create additional revenue, but guarantee a regular dialogue.



“The technology will be used in an even wider perspective and will increase the accuracy of everything from local property taxation to house price indices.”

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