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The best way to get through Christmas is to save all year round – with an offset mortgage you can’t help but save, so by Christmas you should have plenty of hard-earned savings to spend.

New figures from Abbey has found that Brits will use £3.45bn of their savings this year to help cover their Christmas spending.

It found that a third of us plan to use 9% of this year’s savings – an average of £221 each. But it’s no surprise however that the majority of people are planning to cut back this Christmas, with gifts for family and friends first on the list of cut backs, as 42% of Brits say that they will reduce spending on these.

As many of us plan to reduce spending on Christmas drinks, parties and meals. Shockingly, almost one million Brits are already saying they will return the gifts they receive this year in exchange for cash, in order to reduce the financial burden of the festive season.

Those with an offset mortgage do not have to worry about cutting down – in this low rate year, offset mortgage holders have had to spend out less on their mortgage each month, giving them more room to save.

Most concerning however is 39% of us are currently saving nothing and one fifth of people claim to have no savings whatsoever to fall back on this Christmas.

Reza Attar-Zadeh, director of savings and investments says: “It’s clear that many people are planning ahead and scaling back this Christmas in an effort to reduce their spending, which seems a sensible move. We know that people still rely on their savings to cover many of their Christmas outgoings but savings shouldn’t just be for Christmas, and we encourage people to keep a healthy balance, so that they’re starting the New Year from a good base.

“Whether savers decide to put their money aside for the long term, for a specific purpose such as a Christmas or a holiday, or for emergencies, the most important thing is to work out a plan of action that works for them – then choose the right products to suit their needs”

For some, that right product is an offset mortgage. If you want to know if offset will be your best choice, talk to a financial adviser about getting hold of a mortgage that helps you save throughout the year.

SOURCE: Abbey, 30/11/09

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