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Wednesday 27th of May 2009
May 26, 2009

Parents help offspring with Yorkshire’s Offset Plus


by David Masters
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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Story link: Parents help offspring with Yorkshire’s Offset Plus


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