The Government has launched a scheme to help people with lower incomes start saving.

The Gateway to Greater Savings will help those on lower incomes to save by topping up every pound saved with a Government contribution. It aims to kick-start a saving habit and to get more money into the financial industry.

Angela Knight chief executive of the British Bankers Association says: “It has always been a frustration that the very people who would benefit most from regular saving are those least able to do so. When every penny has to be used to maintain a household, there is no opportunity to save.

“Britain’s banks are committed to helping this vital initiative to work, and look forward to contributing to its progress through Parliament to bring about an effective and simple solution.”

This is a great way to get people making the most out of their money, but there is already a great way for people to save and save – in offset.

Offset mortgages do not need Government aid – the vehicle reduces the rate of the mortgage it is attached to itself. So every pound saved lowers the mortgage rate just a little, which lowers monthly repayments.

If you think lower mortgage repayments will do more for you than Government contributions, talk to your adviser today.

To stay abreast of current trends, news and comment on offseting mortgages visit the Offset Mortgage Blog.