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You could get more for your savings with an offset mortgage

1st February 2011 Print

High rate tax payers could earn £2085 more on savings of £50,000 in just one year with an offset mortgage.

In the current environment of low interest rates, rising inflation and the recent hike in high earner's income tax rate everyone is hunting for the best home for their hard earned savings.

For those wanting easy access to their savings an instant access account is a must, but with the Bank of England Base Rate likely to remain low into the new tax year, first direct argues that savers, especially high rate tax payers, with a large savings balance can get more benefit from offsetting their savings against their mortgage instead.

Richard Tolchard, Senior Mortgage Product Manager commented: "For those people who need a mortgage and have savings an offset is a fantastic option.  They will benefit from a higher equivalent rate of interest with the added benefit of instant access to their savings."

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