Tax Benefits With The Leeds Building Society Offset Mortgage

So how can you avoid tax with a Leeds Building Society offset mortgage? Well, it's a facet of all offset mortgages, not just the loan from the Leeds, but the premise is simple - usually when you accrue interest from money in a savings account you are taxed on that as it is deemed income, but because savings attached to an offset do not accrue interest they are not taxable, any profits you make from the deal are tax-free. So by taking out a loan like a Leeds Building Society offset mortgage you avoid losing a percentage of your hard-earned profits.

Because the loan is from a building society, you can expect the savings aspects of the deal to be excellent - building societies specialise in looking after money for the express purpose of lending it out for mortgages. And the Leeds Building Society offset mortgage is no different - it offers the flexibility to add to, and remove your savings, as you want. So if you earn erratically as you rely on bonuses, freelance work or commission you can reduce your mortgage term as and when you need it. The Leeds Building Society offset mortgage even includes a chequebook for easy access to your savings.

Of course, there has been a lot of concern surrounding building societies of late - several have had to take part in emergency rescue plans to save them. But that is no reason to fear investing your money into them - there are several Government measures to make that if something ever happened to the Leeds, your Leeds Building Society offset mortgage would remain safe. Firstly, the Financial Services Compensation Scheme makes sure that your first £50,000 of savings is safe, and secondly the Government recently wrote new legislation that means if a mutual does fall into difficulty, the state and other building societies can step in and help. So if you are hesitant about the safety of a Leeds Building Society offset mortgage, don't be - your money will be safe.

So if you are a higher earner and are sick of losing a large proportion of your income to the taxman, you should be considering using an offset, like the Leeds Building Society offset mortgage, to make your money go further. It would also allow you to pay your mortgage off earlier or reduce your mortgage payments as you invest more money. So talk to a mortgage adviser about how your money can work harder with a loan like the Leeds Building Society offset mortgage. You can be sure that you can save thousands over the life of an offset - and reduce your loan at the same time.

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Pro's

Choice - either pay your mortgage off early or reduce monthly payments

Con's

Only a maximum of 3 linked savings accounts to the mortgage

Features

Overpayments/underpayments

Offset Mortgage Centre

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