Offset Mortgages

Use your savings to reduce the interest you pay on your mortgage.

Selected 2021 Offset Mortgage Offers

2 Year Offset Mortgage Offer – 75% LTV

2 Year Offset Mortgage

  • Initial Rate – 3.19% APR
  • Offset Mortgage – Link your savings and current account to your mortgage and only pay the interest on the difference
  • 75% Loan To Value (LTV)
  • Reverts to 3.54% after 2 year term
Call First Direct FREE on 0808 296 5500
Overall cost for comparison 3.60% APRC
Type
Offset Fixed
Initial Term
2 Years
Initial Interest Rate
3.19%
Reverts to 3.54%
Max LTV
60%
Product Fee
Yes
Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.60% APRC. This is the cost of the mortgage over the full term.

Type
Offset Fixed
Initial Term
2 Years
Initial Interest Rate
3.19%
Reverts to 3.54%
Max LTV
75%
Product Fee
Yes
Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.60% APRC. This is the cost of the mortgage over the full term.

Type
Offset Tracker
Initial Term
Base Rate Tracker Offset
Initial Interest Rate
3.29%
Max LTV
60%
Product Fee
Yes
Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.40% APRC. This is the cost of the mortgage over the full term.

Type
Offset Tracker
Initial Term
Base Rate Tracker Offset
Initial Interest Rate
3.29%
Max LTV
75%
Product Fee
Yes
Call First Direct FREE on 0808 296 5500

Early redemption charges may apply. Overall Cost for Comparison 3.40% APRC. This is the cost of the mortgage over the full term.

Type
Offset Flexible
Initial Term
Life of Mortgage
Initial Interest Rate
4.25%
Variable
Max LTV
80%
Product Fee
Yes
Call NatWest FREE on 0800 158 2934

Early redemption charges may apply. Overall Cost for Comparison 4.40% APRC. This is the cost of the mortgage over the full term.

Type
Offset Flexible
Initial Term
Life of Mortgage
Initial Interest Rate
4.25%
Variable
Max LTV
80%
Product Fee
Yes
Call RBS FREE on 0800 096 7447

Early redemption charges may apply. Overall Cost for Comparison 4.40% APRC. This is the cost of the mortgage over the full term.

Using your savings to offset your mortgage interest payments

Offset mortgages are interest only mortgages where you can link your savings to “offset” the interest you pay on your mortgage.

Example: If you have a £100,000 mortgage, a savings account with £20,000 and a current account with £1,000 in it, you will only pay interest on the difference between the money you have and the money you owe.

In this example you would only pay interest on £79,000.

Typically for this type of mortgage applicants will have to earn at least a set amount of income annually.

With First Direct the minimimum sole income is £50,000.

A repayment strategy will also be required as the mortgage will be on an interest only basis. the lender will need to see how you will repay the capital.

Offset mortgages are a type of interest rate deal that links your current account, savings account or credit card to your mortgage loan with the aim of reducing the amount of interest you pay and decreasing the overall size of your mortgage.

Your savings are combined with your debt and the interest you earn on your savings is used to reduce the amount of interest you pay when repaying your mortgage loan, potentially saving you a significant amount of money.

The more savings you have, the more interest you are likely to earn, and the interest accumulated on your savings is used to reduce the interest on your mortgage loan.

Offset mortgages are generally considered to very flexible, and may enable customers to:

  • Make as many overpayments as they want to reduce the overall size of their mortgage
  • Make underpayments in times when they need to dip into their savings
  • Take advantage of a drawdown facility allowing them to withdraw money from their mortgage account
  • Take payment holidays if necessary

Offset mortgages could suit you if you are a person:

  • With substantial savings that can be put to use
  • Who has a cash ISA
  • In a higher tax bracket
  • With buy-to-let properties

Get a Better Offset Mortgage!

Independent Mortgage Advice

Mortgage & Bridging Loan Advice Service

Special features of what we offer include:

  • Whole of market service – We work with over 70 UK mortgage lenders
  • Great Rates! – Access to leading market mortgage & bridging finance rates
  • Exclusive Deals – Access to exclusive loan deals not available on high street
  • Fast turnaround – speak to us today if you need to move quickly.
  • Raising Finance? – Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? – we have access to a range of finance solutions

Use our mortgage advice service for expert help:

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