Mortgages 'could' offer escape from bank charges

14-Mar-2007

Customers - such as first time buyers - opting for current account or offset mortgages could escape the imposition of current account charges, experts claim.

According to a report by research company Defaqto, although free current account banking could end in one or two years, those customers opting for these types of mortgage products could find that they are spared of the additional costs, which may be of interest to would-be first time buyers concerned over their monthly outgoings.

"With the likely ending of free full service current accounts, customers will potentially be able to save around £120 or so a year by having a current account or offset mortgage," said David Black, head of banking at Defaqto.

"They are now increasingly regarded as mainstream products," he added.

In total there are 36 providers offering current account or offset mortgages, including Natwest and Clydesdale.

Defaqto was established in 1994.

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