50% taxpayers should consider mortgage offsetting

Published on

Data from moneysupermarket.com shows that savers and borrowers who fall into the new income tax bracket of 50% would need a savings account paying at least 7.4% to beat the effects of tax and inflation.

Unfortunately, the impact of base rates at an historic low of 0.5% and the Retail Price Index of 3.7% is that there are now no UK savings accounts that will give 50% taxpayers a real return on their savings.

However, for those 50% taxpayers with savings and a mortgage, moneysupermarket.com says now could prove the perfect time to consider switching to an offset mortgage deal as a way of providing an alternative to poor paying savings accounts.

Hannah Mercedes-Skenfield, mortgage channel manager at moneysupermarket.com, said: “Many people in the new 50% tax bracket will be looking at ways to limit the impact of both tax and inflation. As a result offset mortgages are an extremely attractive option for borrowers who also have a decent savings pot.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

The Coventry cuts selected intermediary residential fixed rates

Coventry for intermediaries has reduced a number of residential fixed-rate products for new and...

Mortgage Advice Bureau completes acquisition of Dashly

Mortgage Advice Bureau (MAB) has completed the acquisition of technology and data company Dashly,...

The Buckinghamshire lowers rates across key ranges

Buckinghamshire Building Society has cut rates across a wide spread of residential and buy-to-let...

FCA finds protection market delivering good outcomes, says TPFG

The Property Franchise Group PLC (TPFG) has responded to the publication of the Financial...

Conditional selling remains industry flashpoint as enforcement lags

Conditional selling remains one of the most persistent and contentious issues facing the UK...

Latest publication

Other news

The Coventry cuts selected intermediary residential fixed rates

Coventry for intermediaries has reduced a number of residential fixed-rate products for new and...

Mortgage Advice Bureau completes acquisition of Dashly

Mortgage Advice Bureau (MAB) has completed the acquisition of technology and data company Dashly,...

The Buckinghamshire lowers rates across key ranges

Buckinghamshire Building Society has cut rates across a wide spread of residential and buy-to-let...