Many Brits have pressed on with their life’s plans regardless of the recession, and that’s great, but they should make sure they can continue that with an offset mortgage.

According to Clydesdale and Yorkshire Bank, the majority of people in the UK haven’t let the recession affect their life plans for 2010. They are still getting married, planning a family or setting up a business – the banks say that, contrary to popular belief, the vast majority of people were not deterred from big decisions for 2010.

It says that almost two-thirds of adults say they are even pressing on with holiday plans this year and just 6% said they had decided not to change their car in 2010.

It is good news that people are sticking to their guns, but if they do not have the means to do so they are putting everything at risk – we are not out of the economic woods just yet and rising unemployment still stalks the nation. So if people are going to keep spending they have to have a means to do so safely.

One way is through an offset mortgage. It allows you to save lump sums alongside the mortgage, reducing your rate of repayment. But it also allows you to take out some or all of that lump sum, while at the same time allowing you to be flexible with your rate of repayment. It’s the choice for people who want to be able to do the big things in life, but it demands that these people save as much money as they can in the mean time. It also gives them a financial cushion, should things go wrong.

Steve Reid, retail director, Clydesdale and Yorkshire Banks, said: “The fact people have pressed on with plans for big ‘life events’ such as weddings or having a baby, probably suggests good financial planning, as these events generally allow for a fairly long planning phase.

“This is a good financial lesson in itself. By saving regularly you can build that nest egg for any occasion – particularly those smaller events or unplanned occurrences that can be financially painful. If nothing else, we should all see the benefit of having a financial cushion to fall back on.”

SOURCE: Clydesdale Yorkshire Bank, 03/04/10

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