Offsets come of age in era of low rates

7 June 2010

As the World Cup kicks off it’s hard to believe it was 20 years ago that we saw the iconic image of Gazza shedding tears at the 1990 tournament.

That emotional incident, along with his footballing brilliance, made him a national treasure.

Some 10 years on in 2000 we managed to emerge unscathed from the millennium bug that was claimed to have the potential to cause a meltdown in computer systems the world over.

And the same summer saw Woolwich become the first high street lender to launch an offset mortgage.

Obviously, much has happened since then but as it celebrates its 10th anniversary the offset mortgage is still going strong and is especially prominent in this period of low interest rates.

In fact, Defaqto says the combination of flexibility, tax advantages and low interest rates could mean now is the time for higher rate taxpayers to consider offsetting.

Flexibility has become a staple in our lives. In the past 10 years more individuals have become self-employed and consumers are more financially disciplined.

The past few years have highlighted how we all need to make our money work efficiently and whether clients are first-time buyers, landlords, higher rate taxpayers or self-employed, offsetting can be beneficial.

So while the concept may still be relatively young there is no mistaking offsets’ maturity.

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