Homeowners saving £29bn with
Throughout the UK nearly 4 million
people could save up to £29bn
in income tax and interest, leaving a total average of £11000
per household, homeowners however must switch to an offset
Yorkshire Bank found out that nearly a quarter of homeowners
within the UK have their current account, savings and mortgage with the same building society or bank, however could save extensively
if they took out an offset deal.
Homeowners are also potentially missing out on tax advantages.
Better than making little amounts of interest on savings, offsetting
mortgage debt enables customers to increase greater tax competence
by successfully earning the mortgage interest rate. Cooperatively
these homeowners could save £151million in tax over time,
according to Yorkshire Bank's calculations.
Yorkshire Bank's head of retail, Gary Lumby commented:
"With the recent rises in the Bank of England's Base, many offset
mortgage homeowners can see the positive balances in their savings
and current accounts working even harder to offset the mortgage
interest. With built-in payment flexibility there is also an
option to overpay or underpay.
"The average homeowner who has their savings, current account
and mortgage with the same bank but has not yet considered an
offset mortgage could be missing out on a great opportunity."
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