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New family savings account from Yorkshire Building Society

27 September 2005
Yorkshire Building Society has launched a new account designed to allow parents to save for their children without dipping into their own savings.

Offset Plus allows parents to forfeit interest on their savings account and instead put it towards monthly mortgage payments for their children.

And as the savings do not earn interest, there is no tax to pay.

A spokeswoman for Yorkshire Building Society, said: "Offset Plus has been designed with first time buyers in mind.

"It allows parents, who cannot afford to give a sizeable amount of money to their children, an option where they can provide financial support to their children.

"Offset Plus does not allow individuals to borrow more than they can afford, but helps to make life easier once they have taken that big step onto the housing ladder."

Since the introduction of buy-to-let mortgages in 1996, more and more parents have gone further than helping out their kids with mortgage payments.

In recent years parents have become university student landlords by buying properties in university towns, installing their child as the chief tenant and letting out the rooms to other students to cover the mortgage payments.

After the kids graduate the parents sell the property or continue to rent it out and collect the income.

To read more about Savings Accounts, click here.

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