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Expert: High earners still need to save

10/09/2007

People on high incomes still need to save money and they would be better off switching to an offset mortgage, a financial advisor has warned.

Despite earning high figures, it is always important to have "three months` income" in an easy-to-access account in case of short-term hardships, a spokesman for Essential Money has said.

While many earning over £100,000 per year may be financially secure, continual investments could mean bank balances may temporarily be low. An offset mortgage, for example, could save up to £370 in the first year.

Thomas Dickson, a spokesperson for Essential Money, said: "If [the consumer is] adventurous they probably have minus in the bank because they are buying properties and investing abroad and taking risks. If they`re quite cautious they`ll probably have six months` savings in their bank account."

According to figures from Intelligent Finance, one in four UK homeowners could be better off with an offset mortgage.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according