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Offset Lender Pulls The Plug - Times

Intelligent Finance, the popular online bank, has been accused of “kicking out” thousands of borrowers who have its cheap offset mortgages.

The online arm of Halifax, which is now part of government-backed Lloyds Banking Group, is writing to all customers to say that from next April they will no longer be able to take their mortgages with them when they move home, potentially forcing many to switch to other more expensive providers.

Borrowers who move house before April can keep their offset deals but only if they do not need to borrow more money. This will force customers who are trading up to a more expensive property to go elsewhere.

The move has angered Intelligent Finance (IF) customers who were attracted to the online bank by its promise of cheap, flexible home loans. IF specialises in offset mortgages, which allow borrowers to set their savings against their loan to reduce the amount of interest paid.