Bristol & West Mortgages has introduced two new offset schemes.

Bristol & West Mortgages hopes these new plans will highlight the benefits of offsetting. Borrowers are able to pay savings into their offset account, thereby making savings work more efficiently.

By doing this, customers can either maintain current mortgage repayments, reducing their overall mortgage term and saving money in mortgage interest, or can reduce their monthly mortgage payments.

Senior product manager for Bristol & West Mortgages, Bob Stanworth, says, “This offers brokers’ clients two exceptionally competitive rates, with the added benefits of offsetting and peace of mind.”

With the possibility of interest rises, leading to consumers being unable to meet repayments on mortgages, the company emphasises that capped rates can help alleviate fears and uncertainty about the future.

The rates, guaranteed not to rise above the capped level until June 2006, are: 4.89 per cent for term capped at 5.89 per cent; and 4.99 per cent for term capped at 5.99 per cent. The latter includes free legals for remortgagers and a free valuation.

The company also stresses that they are “among the few fully flexible capped rates products in the market.” Borrowers would have immediate access to their savings so that they are able to withdraw savings at any point.