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SME owners urged to offset
4 December 2007 11:30
The owners of small and medium-sized enterprises (SMEs) could afford to enhance their firms and their lives if they opted for offset mortgages, according to a new survey.
Over one in four SME owners said that they would expand their company if they were mortgage-free, Yorkshire Bank's poll found, while almost one in five claimed they would be more inclined to take business risks.
They also felt paying off their mortgage early would improve their domestic life, with one in nine saying they could then hire more staff and cut their own workload and nearly one in four that they would use the money saved to help their kids onto the property ladder.
Although these businesspeople face average combined debts of £133,764, Yorkshire Bank's study found that by opting for a specialist offset product such as its own, they could typically pay off their mortgage nine years early, saving £76,127 in the process.
The lender's Gary Lumby commented that SME owners and sole traders are astute enough to recognise the benefits that offset mortgages can offer to people eager to pay off the outstanding balance on their home as quickly as possible.
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