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News: Mortgages - Yorkshire launches family offset account

Yorkshire Building Society has launched a family offset account which provides family and friends with a way of giving financial help to their nearest and dearest, without handing over their own life savings.

Offset Plus, most likely to appeal to first time buyers, allows parents to link their savings to the new borrower's mortgage.

Savers retain full ownership and access to their savings, but forfeit interest in exchange for a reduced mortgage payment for their children. As the savings don't earn interest there is no tax to pay - usually 20% tax (40% for higher rate tax payers) is taken from all savings interest, generating a greater benefit for the borrower.

The Offset Plus facility is available on all of Yorkshire's range of offset mortgages, which include a choice of fixed rates and lifetime tracker rates. All of the society's offset mortgages are fully flexible, charge interest on a daily basis and have the facility for over and underpayments. Six months accident, sickness and unemployment cover is also provided free of charge.

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