I think bringing back Offset Mortgages could be an interesting venture for smaller players. However, I do wonder why they were scrapped (although not entirely) by the larger players in the first place.
My guess would be that the idea of “savings” and having a large amount of surplus funds in an account to be able to offset is more of a luxury now - or at least we don’t see as large of funds sat in an account.
Also as we are now in a comparatively low interest rate (as compared to the relative height of offsets) in terms of the consumer would that money not be best served elsewhere? (I suppose it is on a sliding scale).
What I would really like to see from Monzo (completely selfishly) is to help the first time buyer without demanding a percentage of equity that will just be lost to the consumer.
Now I’m not really sure how Monzo could play this - but I think as a demographic the first time buyer is ripe for the taking.
I’ve seen some mumurs about a 10% of the Value of the Property being secured by way of a second charge over say a parent’s home - although this in itself is slightly tricky.
Maybe a mixture of say an Offset Style Mortgage but pre-Mortgage. So you open an Account with Monzo and your target is say 5-10% of the property value - if you hold this savings account for X years and then get a mortgage with Monzo you’ll receive some sort of incentive for doing so - could either be some cash back upon completion or a higher rate of interest whilst saving (to reach the deposit amount)