Lloyds Bank Offset Mortgages

Lloyds Bank is a UK bank that currently has around 16 million customers.  It is a subsidiary of the Lloyds Banking Group, which is also responsible for Halifax and Bank of Scotland. Despite the banks size and wide customer base, those who are looking to take out an offset mortgage from Lloyds are going to be disappointed by the fact that the bank does not currently offer offset mortgages. However, if you already hold an offset mortgage, Lloyds may be able to offer you the opportunity to borrow more on an offset basis.

We have listed a few of what we consider to be some of the best offset mortgage deals that are currently available on the market right now in the product comparison table.

Offset mortgages would be a flexible type of mortgage that can be linked to a number of your bank accounts, including current and savings accounts. By forfeiting interest on credit balances, the interest you pay on your mortgage could be significantly lowered.

For example; if a customer had a mortgage of £150,000 and savings of £35,000, they would only pay interest on £115,000 of their mortgage loan.

The widely reported benefits of an offset mortgage are as follows:

• Flexibility
  An offset mortgage will usually allow you to make over- or underpayments, as well as take payment breaks or withdraw money from your account.
• Tax benefits
  Savings are usually taxed, though if you link your savings to an offset mortgage, they will be tax-free.
• Early repayment
  As monthly repayments on an offset mortgage are calculated based on the whole loan, you could effectively ‘overpay’ each month – meaning that you could pay your mortgage back ahead of schedule.

Although Lloyds Bank do not offer offset mortgages, there are many other banks and building societies that do.  Please see our service above for further information on some of these offset mortgage deals.