Offset mortgage and personal savings allowance

eilidhsmum

Hi all,
I'm sorry if this has been posted about before, I have searched and haven't found anything.
We currently have an offset mortgage with a reasonable amount of savings set against it. My husband is a higher rate taxpayer and so the benefits of having our savings effectively sitting at a much higher rate have been worth it.
I have searched the MSE website and online elsewhere but haven't really been able to find much in the way of advice for what we should be doing now that the personal savings allowance is coming into effect. I'm assuming that this impacts on the calculations and the effective savings rate that we are getting.
Any advice or links to other websites/posts that people have found would be really helpful.
Thanks in advance.

AnotherJoe

Nothing to discuss really. Any savings that are offset, are offset against your mortgage at its rate.
So say you owe £100k on a 2.5% mortgage and you have £50k savings, then you are effectively getting 2.5% tax free on that £50k without it counting at all on your savings allowance and your husband could then get the full £500 worth of interest on savings elsewhere.

So you'll just have to look at your mortgage rate and what savings rates you could get elsewhere and do the sums.

getmore4less

You are borrowing less all the savings getting better rate effective rates is nonsense obfuscation.

All you have to do is decide if you borrow money at the mortgage rate can you invest is somewhere that pays more after tax.

Or borrow money somewhere cheaper(stoozing) to offset.