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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.

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