Parents help offspring with Yorkshire’s Offset Plus

An innovative offset mortgage available from the Yorkshire Building Society is proving popular with parents who want to give a helping hand to their offspring.

Yorkshire’s Offset Plus home loan allows two friends or family members to link their savings accounts to a borrower’s offset mortgage.

No interest is paid to the savers, but the mortgage holder benefits from reduced monthly interest payments and a shorter mortgage term.

With typical savings accounts currently paying less than 1% interest, and an average mortgage rate of 4.89% on five year fixed-rate mortgages, the Offset Plus provides value for savers and borrowers.

Chris Edwards, Yorkshire’s head of mortgages and savings, said: “The success we are seeing with our Offset Plus account doesn’t surprise me as it’s a really good way to help a family member or friend with their mortgage without having to hand over large sums of money.”

He added that offsetting is ‘very tax-efficient’ because no interest is earned on the savings, so no tax is paid on the savings either.

Yorkshire Building Society is a mutual organisation with 1.9 million members and £20.5 billion in assets.

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