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A recent news report by the Times found that one in five men have a savings account that their partner does not know about, proof that people are hiding their money – to make the most of your family’s assets you need to be open about them and you have to use them to their full in a decent financial vehicle.

The newspaper said husbands and boyfriends are keeping the money a secret because they think their income is none of their partner’s business and some also keep it hidden for safety in case the relationship does not work out.

This is not a financially prudent idea – money need never be a secret issue between couples, in fact those couples who live together can use their joint monies to get hold of a cheaper mortgage through offset.

According to the study, a man’s clandestine savings account contained an average of just over £2,000 – enough to set up a decent nest egg to help you reduce debts each month. And the more that’s saved alongside that will only reduce mortgage payments further.

The report said more than a fifth of male respondents said that they were concerned partners might not approve of their investments – but if they invested in an offset mortgage their partner would be ecstatic because it would mean their monthly obligations are reduced.

Doug Strachan, financial services director at the Post Office, said in the report: “While the recession has been a wake-up call for many, forcing them to rethink their attitude to money and debt, our research shows that many are still making life-changing choices without consulting those closest to them.

“Financial decisions such as taking out a loan or mortgage represent a significant commitment that, in many cases, will affect your life for many years. The fact that one in six people has kept this decision from partners or family is worrying. When it comes to money, being open and honest with family and partners will help keep financial issues under control and ultimately minimise the risk of building up debts and damaging personal relationships.”

SOURCE: The Times, 10/04/10

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A fifth of Brits could do with taking out an offset mortgage to encourage them to save because right now they are saving nothing at all.

Nationwide has found that in January 2010, the number of regular and occasional savers increased to 79% – the highest since September 2008. But one fifth of people still not saving at all.

Andy Hutchinson, head of savings at Nationwide, says: “Although there is still a lot of room for improvement, it is nonetheless encouraging to see a rise in the number of savers in January 2010.”

It is encouraging but in this new era of save not spend, 100% of Brits need to be putting money aside each month. Not saving anything means it is harder to get onto the property ladder and it means that if something happens, there is no financial safety net to help you. For those with families it is particularly risky because all families need some financial back-up.

These non-savers need an offset mortgage. With an offset, the more you save alongside the loan, the cheaper the loan is to manage each month, so you save even more money. And that money you saved into the offset is available at any time, so it is still there for when you need it most.

Saving money rarely makes you money in these days of low interest rates. But it does with an offset loan. So start making your money work for you for once and talk to an offset mortgage adviser about taking out a home loan that will help you save.

SOURCE: Nationwide, 08/02/10

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

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If you search the Internet for offset mortgage adviser or talk to an offset mortgage adviser you will always hear the message ’shop around for the best offset mortgage’ because it is a complicated financial product. But what happens if you pick the wrong offset loan?

What is the worst that can happen? Well, if you opt for a loan without consulting an expert or without shopping around you will almost certainly end up with a loan that doesn’t work exactly with your income. You might be a self employed person and earn an erratic wage or you may be someone who works seasonally and earns more during some times in the year than others. For an offset to work you need a loan that maxmises your income and that might not be happening with the offset you chose.

You may also find that the offset you plumped for doesn’t allow you to access all your savings accounts and pots. If you have accounts and savings in all different directions then you want them all linked to your mortgage – essentially, the more you can offset against your mortgage the better. If your offset isn’t able to access everything then it isn’t making your money work as hard as it can.

It may also be the case that your income works so as an offset that calculates daily would benefit you, or vice-versa. A good offset loan works with your income and your outgoings – it’s a flexible loan, and should be able to work round you and not the other way round.

It may be that if you do not ask an expert before signing up for an offset mortgage you will still get a loan that helps you save money and is cheaper if you offset more against it. But you may be missing out on a world of benefits, of extras and breaks that save you even more money. And in these tough economic times the more you can save, the better.

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

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The media loves to report house prices rises and dips – it’s easy news and most people are affected by it – but what does it mean to an offset mortgage if house prices rise?

Prices fell heavy in 2008, but through most of 2009 they seem to have improved somewhat and that improvement seems like it is set to continue into 2010 – Halifax found that UK house prices were 1.1% higher in December than in December 2008 – the first annual rise since March 2008.

Prices rose by 1% in December compared with the previous month, marking the sixth consecutive monthly rise according to the bank – it says the average home is now worth £169,042. This number has risen by 9.4% – or £14,552 – from the trough of April 2009, the bottom of a 23% decline from August 2007.

So what does this mean for someone with an offset mortgage? Simply it means that your offset savings do even more. Consider this – an offset mortgage of £100,000 costs someone with £20,000 of savings the same as a mortgage of £80,000. But if another £14,552 has been wiped off the debt, it feels as though the offset borrower is paying off a mortgage of less than £66,000.

So for offset mortgage holders, hikes in house prices make their money work harder. It’s all about relative comparisons and the more equity you have in a home, the more your money does to reduce your monthly outgoings. While some people only enjoy increased equity as their house price increases, offset borrowers get a double whammy of cheaper rates and a smaller debt.

So talk to your mortgage broker about taking out a loan that offers more than most. Offset mortgages are the most innovative loans on the market and do more for their holders than any other home loan. So don’t delay, take advantage of house price rises today.

SOURCE: Halifax, 07/01/10

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

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Right now, less than a quarter of all savings accounts pay enough interest to fight off inflation – if you haven’t done so already, it might be worth considering taking out an offset mortgage to make the most of your savings.

Inflation rates have increased for the first time since February this year and moneysupermarket.com has warned savers to make sure their savings work hard for them by checking their savings products’ rates do not get eaten away by inflation.

Basic rate tax payers will need an interest rate of at least 1.875% to gain benefit in real terms from their savings, increasing to 2.5%  for higher rate tax payers, yet research by moneysupermarket.com shows this is harder to achieve than it would seem.

Easy access accounts have been hit the hardest; only 40 out of over 269, 15%, easy access accounts are paying at least the 1.875% that is required by savers to keep up with inflation.

The news gets worse for high rate taxpayers, with only 7% of easy access accounts able to beat inflation at its current level, and this lowers to a mere 5% of cash ISAs.

Kevin Mountford, head of banking at moneysupermarket.com says: “We expected to see saving rates creep down before the end of the year, but if rates go any lower then savers will find it almost impossible to beat inflation. Anyone taking out a new deal should look for the highest return on terms that suit them, otherwise as the economy stabilises we might see inflation creep up even more and bite away at those interest rates. I would urge savers to be more attentive than ever to ensure they get the best return possible.”

The answer is simple – take out a tax-beating offset loan. Because your savings do not actually accrue interest in an offset, you do not actually pay any tax on the benefits – they appear through a lower mortgage rate instead. Think of it as a legal, efficient tax loophole – so talk to an offset mortgage expert about jumping through that loophole and actually make some money from your hard earned savings for a change.

SOURCE: Moneysupermarket.com, 18/11/09

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

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Offset mortgages are always put into the ‘niche’ category of mortgages, alongside self-build, self-cert and buy-to-let, but offset shouldn’t be niche – it could improve the lives of millions of people.

Niche means an area that is only of interest and only suitable for a small, select group, and that’s fine for many mortgage types. Self-cert mortgages are only good for those who cannot prove their income, self-build mortgages are only good for those who want to build their own house and buy-to-let is only good for those looking to invest and rent out a property. But offset is much more than niche – offset could work for a large percentage of the population.

Offset allows you to take lump sums of money and ‘offset’ them against your mortgage. For example, a £100,000 mortgage, with £25,000 offset against it would mean the rate or even the term of the loan would reflect that of a £75,000 mortgage. The £25,000 has not moved and has not been spent – it’s just sitting there, as security.

With this type of loan, many choose to overpay – they continue to pay a rate that reflects the original £100,000 loan, not the new £75,000 offset amount. So each month they add towards their mortgage, shrinking the amount they owe and even the term of the mortgage.

But the loans are flexible – if the borrower finds themselves in difficulty then they can choose to pay at a rate reflect the £75,000 or even less, if the lender allows it. They can even overpay above and beyond the amount a £100,000 loan demands, reducing their debt by even more every month. There is also the chance for the borrower to stop paying completely for a short period, again if the lender allows it.

So all you need with an offset loan is savings, the ability to pay a mortgage and the desire to shrink your debt. Millions of Brits have savings and even more have the ability to pay – and everyone wants to shrink their debt. So is it niche? Not at all – offset, like any other mortgage type, may not be right for everyone but we are sure that it is right for millions of Brits looking to save and reduce their mortgage debt.

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

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If you are self employed, it’s probably been a pretty tough year and it probably not very easy to get hold of a mortgage – but you could take advantage of a current account offset mortgage and save yourself a fortune in the long run.

According to the Office of National Statistics, more than 3.5 million people are now self-employed – people are setting up consultancies, agencies and doing freelance work in the service sectors. They are builders, plumbers and electricians, or they are taxi drivers or own their own shop. They might have their own restaurant or they might do a million other jobs whereby they are their own boss – but for them it’s tough to get a mortgage.

Self cert mortgages are all but extinct in this post-credit crunch world. Lenders are unwilling to take the risk of someone who cannot prove their income with a PAYE. This is infuriating to millions of hard working people who earn more than enough to pay for a mortgage.

But there are always alternatives to self cert mortgages for the self employed – and one of them is a current account offset mortgage. And there are many reasons why.

Using current account mortgages, these self employed borrowers can avoid the headache of finding the money to pay their tax bills – they can pay everything they make into a current account mortgage and then put aside what they need for taxes at the end of the year. While this money sits in their account, it reduces the outstanding loan and their monthly interest rate payments. So when it comes to paying the taxman, they may have almost saved enough so as it’s not a financial burden at all.

Of course, any money that is in a current account mortgage is exempt from Income Tax, as it is regarded as a mortgage rather than a savings account. So any money you save is tax-free.

Talk to a mortgage adviser about your options if you are a self employed person.You might find that moving your mortgage into a current account offset is a great way of getting through the financial downturn.

SOURCE: ONS, June 2008

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

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An offset mortgage can be the best way to beat the recession – even if you lose your job.

More than a third of this country believes that the State welfare system will offer enough to those people who find themselves out of work, according to a survey by Scottish Provident – but this isn’t the case. You will need your own money and your own assets to get by if you lose your stream of income.

Scottish Provident says more people think they have a safety net in the Government, with 72% of Brits believing that the state welfare system in Britain should be enough for them to get by in this downturn if they find themselves out of work.

Susan Barclay, head of marketing at Scottish Provident, says: “Our report reveals that over the past five years, more people have come to believe that the state would provide an adequate safety net should the worst happen and we find ourselves out of work. However, the reality is that the average increase in job seekers allowance of just under £6 doesn’t come close to the cost of living in today’s world and the Government will continue to place greater emphasis on people providing for themselves.”

To provide for yourself you need flexibility and you need savings – both of which are available with offset mortgages. If you lose your job you can chose to reduce your mortgage repayments for a period, as well as spending some of your offset savings. Of course, any such decisions should only be made with the help of a professional adviser, but those options are there and can help people who find themselves temporarily out of work.

No one can predict redundancy, but you can be ready for it with an offset mortgage. If you end up on state benefits, you simply will not be able to pay your debts, pay your mortgage and keep up with yours and your family’s needs. You need to be prepared for anything – so be ready with an offset.

SOURCE: Scottish Provident, 25/09/09

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

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If you have savings it might be time to consider if they could be better placed elsewhere – talk to a mortgage adviser about moving your savings into your mortgage.

But the time to act is now – Britons have already dipped into £11bn worth of ISA cash in the last 12 months, according to Abbey Savings, whose research discovered Britons withdrew almost three times as much compared against the previous 12 months.

In fact, it found that more than 7 million savers have raided their ISA savings with the average saver withdrawing £1,573 in the past 12 months – almost two fifths of those questioned cited general living expenses as the main reason for their withdrawals. This year more than 3 million people have turned to their savings because of redundancy or reduction of income, while unexpected expenses such as home repairs have also forced 5 million Brits to delve into their savings.

Reza Attar-Zadeh, director of savings and investments at Abbey, says: “The sharp increase in the amount that people are withdrawing shows that many of us may have needed our savings to make ends meet, and just goes to highlight the importance of having savings to fall back on.

“There’s no denying it’s been a tough year so it’s understandable that people have turned to their savings in these trying times. It’s vital that we all keep some money aside in the event of an emergency but raiding your ISA account can prove costly in the long term as what you take out you can’t replace.”

The best way to keep your savings and reduce your outgoings is to invest them into an offset mortgage. The money will reduce the amount you have to pay out on your mortgage every month, giving you more breathing space without having to spend a penny – the money is offset against the debt rather than spent on the debt, so it’s still there if you need it. Also, like an ISA, any savings you make from your offset are tax free.

So talk to a mortgage adviser about making the most of your savings. It might seem like there is no alternative but to spend your savings in the downturn, but there could be ways and means to keep your money and reduce your outgoings.

SOURCE: Abbey, 25/09/09

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

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Around two thirds of Brits now admit the credit crunch means they are more likely to stay in during the evenings to save money – if you pick the right savings vehicle, these savings will add up during the downturn.

Just over one in ten Brits say the recession has meant they are resorting to in-house entertainment such as dinner parties, house parties and BBQs according to Moneysupermarket – people have woken up to the fact that they must put away money each month, and that means finding alternative ways of enjoying life on the cheap.

Julie Owens, head of home insurance at moneysupermarket.com says: “It’s no surprise we’re a nation of belt-tighteners at the moment. There’s a chance we’ll see this increase further too, especially as the autumn nights set in and we head towards winter.”

It might be hard to cut up your plastic and begin to live within your means, but a recession means everyone is doing it. So the more you can do to save and enjoy life – by staying in, cutting out expensive excursions and making what you have go that bit further, you will notice the difference.

If you can save a few hundred pounds more each month that can make a real difference to your offset mortgage – if you can increase your offset lump sum, you will reduce your monthly rate and you will also reduce your mortgage term.

So talk to your mortgage adviser about how much you could, and should be saving each month. Putting money into your mortgage needn’t be a hassle – and it will pay off in the end.

SOURCE: Moneysupermarket.com, 14/09/09

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