Offset Mortgages

Offset mortgages allow you to link the balance of your mortgage and any other borrowings you may have (such as credit card debts or personal loans) to money held in savings or current accounts with the same lender. This allows you to ‘offset’ the credit balances in your current and savings accounts against the mortgage balance, so that interest is only paid on the difference. For example, if you have a mortgage of £120,000 and savings of £20,000, you will pay interest on only £100,000 of borrowing.

You will not earn interest on your credit balances under this arrangement, but the amount of interest you are charged is reduced, offering the possibility of making substantial savings or paying off your mortgage earlier.

The advantages of an offset mortgage include:

Flexibility: these loans offer the option to overpay, take a break for a set period from your mortgage payments, or even borrow back cash from your mortgage
All your money works for you; every penny in your savings or current accounts helps to pay off your loan earlier
By saving interest on your mortgage rather than earning it on the money in your current and savings accounts, there is no tax to pay
Your accounts remain completely separate and you can still access your money just as you normally would

To get a quote on an offset mortgage, complete our simple enquiry form.

Initial Rate	Type	Period To	Provider	The Overall Cost For Comparison APR	LTV
5.65%	Offset		Beverley	6.30%	75%	More
5.79%	Offset	Jul 2033	Northern Bank Ltd	6.00%	90%	More
5.79%	Offset	Jul 2033	Northern Bank Ltd	6.10%	90%	More
5.98%	Offset		First Direct	6.40%	80%	More
5.99%	Offset	Jul 2010	Scottish Widows Bank	6.60%	75%	More
6.00%	Offset		First Direct	6.20%	90%	More
6.09%	Offset	Jul 2033	Northern Bank Ltd	6.40%	90%	More