Here are a few tips to help you identify which clients could benefit from an Intelligent Finance Offset Mortgage:
Mr High Rate Taxpayer
When tax-paying clients offset their mortgage they earn no interest on savings, so there’s no tax to pay, which makes it a very attractive option. In fact, a high rate taxpayer has to earn a gross savings rate of 8.65% to match the benefit of offsetting, while a basic rate taxpayer has to earn 6.49%. (These figures are based on a £120K Offset Tracker 85 for the term of the mortgage product at a rate of 5.19% with £20K Offset Savings at a rate of 4.40%.)
Miss Debt Consolidator
Clients looking to reduce their monthly payments can remortgage with Intelligent Finance and roll their debts into their new Offset Mortgage. They get a low rate and the reduced payment should help them save. In the future, by offsetting these savings against their mortgage, they could reduce the amount of interest they pay.
Mr Extravagant
If clients want their new car or conservatory right now, our Offset Mortgage could be right up their street. Rather than waiting to save the money they need or using a high-rate personal loan or credit card, they can take additional borrowing at our low mortgage rate.
Ms Money
Clients who earn bonuses and/or monthly commission can pay lump sums into their Intelligent Finance Savings jar and offset them against their mortgage. This way, they keep hold of their savings while at the same time reducing the amount of interest they pay on their mortgage.
Mr and Mrs Stork
Clients who are planning to have a child can build up savings before the birth and offset them against their mortgage. With tuition fees, house deposits and children’s weddings to pay for in the future, they can offset their savings against their Intelligent Finance mortgage and pay less interest overall.
