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

Retirement drives more than half of financial advice enquiries

Retirement concerns account for more than half of financial advice enquiries received by Inzuzo,...

Friends and family offer route on to property ladder for single buyers

More than half of prospective buyers would consider purchasing a home with a friend...

Newcastle expands broker mortgage range with higher-LTV deals

Newcastle for Intermediaries has expanded its mortgage range with the return of higher loan-to-value...

Mortgage arrears and possessions fall in second quarter

The number of UK mortgages in arrears declined in the second quarter of 2026,...

Paragon restores Track to Fix option on buy-to-let tracker mortgages

Paragon Bank has reintroduced a feature allowing existing buy-to-let customers to move from a...

Latest publication

Other news

Leasehold reform has a September window – will Burnham use it?

At the time of writing, the Commonhold and Leasehold Reform Bill still has no...

Retirement drives more than half of financial advice enquiries

Retirement concerns account for more than half of financial advice enquiries received by Inzuzo,...

Friends and family offer route on to property ladder for single buyers

More than half of prospective buyers would consider purchasing a home with a friend...