If money is lodged into a savings account can this be set against part of the mortage?
Answers:
Only if you have an offset mortgage that allows it. Many banks offer this type of mortgage, but it is generally at a higher rate of interest. You then get a specific accuont where yuo place your money and it is offset against it.
Possibly, but be careful.
If your savings account does not perform as well as expected (interest rates can change), you may be left with a shortfall at the end of the loan period.
That's no fun if you happen to be retiring at that time.
Virgin One account allows you to have all your eggs in one basket ,so to speak!You have to qualify to get one of these but worth looking into.Other banks etc have them too.Have a word with your own bank about any offers with them.
Yes - as per an earlier answer provided that you have an offset mortgage. There is generally a premium interest rate charged, but the difference is much smaller than it used to be. For example. Woolwich / Barclays charge an extra 0.25% percent. Whether this makes a difference depends upon how much you anticipate having spare that would otherwise not collect interest at all (ie many current accounts) or that you couldn't be bothered to transfer in an out of a savings account. In my case, all I need is a Woolwich mortgage and a Barclays current account, and the balance on my current account offsets the mortgage balance, without having to muck around with opening a savings account at all.
If you pay tax at 40% then the savings are much greater. I could explain why, but it would take a long time and it is sort of obvious. BTW I have explained this in terms of the Woolwich / Barclays product but I'm sure they all work the same, and I don't have an interest in promoting Barclays (in fact I found that their customer service was quite poor at the outset).
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