Offset Mortgages Pros and Cons

Latest Deal - NatWest 2 Year FIXED »

Call FREE - 0800 158 2934 

1.32%Reverts to 3.75% after 2 years
  • 2 Year Fixed - 60% LTV Deal
  • Call FREE - 0800 158 2934


Overall Cost for Comparison 3.50% APRC. This is the cost of the mortgage over the full term. Early redemption charges may apply.

When considering the pros and cons, offset mortgages will be affected by as number of different factors that are worth considering.

Pros

  • With money linked account, customers can expect some significant reductions to the interest rates on their mortgage
  • Offset mortgages are often very flexible, and lenders may allow customers to underpay or overpay as they see fit
  • Customers may also have the option of linking several different accounts together (current, savings or ISAs etc) in order to save even more on their interest rates
  • The money that is held in a savings account may be tax free, allowing borrowers to save themselves a significant amount on their saving that may otherwise have been taxed

Cons

  • The starting interest rates for offset mortgages are often significantly higher compared with other mortgages
  • Customers may have reduced access to their savings, as withdrawing them could significantly increase their interest rates
  • The money that is used in savings accounts will not earn interest


If are searching for a suitable offset mortgage, feel free to consult our mortgage comparisons table for more information on offers that are currently available. The FREE mortgage calculator below instantly compares over 5,000 mortgage deals to help you find the right offset mortgage for you:

 

About you
Your income
Partner income
Income = £95,000
This calculates your maximum loan
Your property
Property value
Your deposit
Borrow = £160,000
Your loan to value (LTV) = 51%
Your mortgage
Mortgage Type
Payment Method
Payment Term

No mortgages were found which match these requirements. Please use the search form above to find mortgages which suit your precise requirements.

In an increasingly diverse market, finding the right mortgage to suit your requirements may seem like a very confusing task. 

 

Customers can debate the pros and cons of offset vs. repayment mortgages for example, however, it is perhaps most important to shop around for the best deal available, as different providers will often offer competing deals at drastically different rates.Although each type agreement may offer several benefits, providers commonly offer both offset and repayment policies with a good deal of flexibility with regards to under or overpaying, something that may be extremely useful for borrowers.

 
Like repayment mortgages offset mortgages also offer customers a useful way of saving money on their interest repayments, however, it is important to understand exactly how each plan may benefit potential borrowers. Exactly how much customers can save on their interest rates will depend on how much money they are prepared to set aside. Capital that is set aside in these accounts will not gain interest; however, it can still be accessed at any time.

 
Take a few moments to consider whether or not the offset mortgage deals featured in or product comparisons table are suited to your current situation.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker