Q: I am about to start working as a locum. I will need to save up to a third of my monthly income to pay for the whopping tax sum due after about a year of becoming self-employed.
My dilemma is between saving in ISAs and going for a better mortgage deal or putting the money into an offset mortgage account and linking my saving accounts to it.
I have a flexible mortgage at 3.5 per cent interest and am confident that my wife and I can save £22,400 per year - the full ISA limit of £10,200 each.
But should we put that in ISAs or in a bank savings account linked to a new offset mortgage account?