Offset Mortgages Can Work For The Well-Off Too

» Read the complete article

It is not just those who are scrimping and saving who could benefit from an offset mortgage – it’s unique properties make them an excellent choice for the wealthy too.

Offset mortgages are a great way of making more from your savings. But they are also a great way of getting round the taxman – because the benefits of offset are not based on interest, you accrue no income tax on what you get out of the mortgage – so you make even more profit, tax-free.

This is why offset mortgages are most cost-effective for higher rate taxpayers – those in the highest tax bands are saving as much as 40% tax by switching over to an offset – they do not have to lose 40% of their savings’ profits because with offset it’s about how small you can make your mortgage repayments, not how much interest you can accrue.

Also, it is these higher earners who are most likely to have the biggest savings, so the benefits are even more pronounced – those who can invest as much as half or more of their property’s worth into an offset will see significant savings each month.

At the start of next month the Government will be increasing income tax to 50% for those earning more than £150,000. So for these highest earners, an offset mortgage can help them avoid even more tax than ever – more savings and less tax makes offset the perfect choice for the wealthiest of Brits.

But just because you are successful in your field and earn a good wage doesn’t mean you know the ins and the outs of the mortgage market. Even if you earn the sort of wages a top Premiership footballer might earn, you still need to talk to an offset mortgage adviser about taking one of these ingenious but complicated mortgages.

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