Although aimed primarily at private individuals and non-charitable trusts, a spokesperson nevertheless confirmed: “It is available to any broker that refers an eligible client”.
Unlike most offset mortgages on the market, it can serve both residential and personal buy-to-let purposes, and allows clients to use their deposits to either reduce their monthly mortgage payments or the mortgage balance that is charged interest. Additionally, it triggers no ERC (Early Repayment Charge) for those wishing to repay their mortgage early.
Borrowers can elect to use up to 10 multi-currency deposits held by a Coutts-banked family member, or connection, to offset their mortgage balance. These deposits will be held in a segregated account and are accessible at all times by the third party who will not be liable for the mortgage. Clients are able to fully offset 50% of their mortgage balance, after which every £1 deposit counts as 50p towards offsetting.
James Clarry, chief operating officer and head of lending & capital management at Coutts commented: “Offset mortgages are not commonplace across the private banking industry, however the launch of our Offset Select Mortgage is in response to a demand from our clients who wish to make use of excess cash balances, including foreign currency deposits, to reduce the cost of their mortgage.
“It also provides a flexible solution to help support the next generation to get on to the property ladder. With a number of differentiating features which makes it unique on the marketplace, the Offset Select Mortgage gives the choice back to the client.”