Offset Plus mortgage from Yorkshire Building Society is a major hit

The Offset Plus mortgage from Yorkshire Building Society (YBS) enables parents or family members to link a savings account to an offset mortgage and it is proving a major hit.

The Offset Plus mortgage is particularly popular with parents who want to help their children with mortgage payments but still retain full access to their savings account.

The mortgage allows up to 2 family members to link their savings with the offset mortgage.

The savings do not earn interest but any savings put towards an offset mortgage means less to pay on the mortgage each month or a reduced term for the mortgage.

Head of Mortgages and Savings at YBS, Chris Edwards, said ‘With Offset Plus the money is not actually given to the borrower, instead it is deposited into the saver’s separate savings account, which is linked to the offset mortgage. The saver retains full control of their money and is able to make withdrawals and deposits at anytime in the usual way.’

He added ‘Offsetting is also very tax-efficient, especially for higher-rate taxpayers as savers don’t earn any interest on their savings so they do not pay any tax on their offset plus savings either.’

Yorkshire Building Society offer a range of offset mortgages, starting at 3.79% for a 2 year fixed mortgage.