The example below shows how we offset the amount of your savings against the balance of your mortgage, reducing the amount on which mortgage interest is paid.
In this example (which is based on a Capital & Interest mortgage) if you continued making payments based on your outstanding mortgage payments alone, you could pay off a 25 year mortgage over 4 years early and save £23,265 in interest charges.
And you do not need a lump sum to save £000s. If you only put £1 per day into your offset savings account, you could save £8,771 in mortgage interest, pay off your mortgage 19 months early and still have savings of £9,000.
Put simply the more you save the less interest you pay and the quicker you pay off your mortgage*.
* If you wish to use offsetting to reduce your mortgage term then you will need to contact us. Otherwise, at annual review, your payments will be adjusted every year rather than reducing the term of your mortgage.
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, credit cards, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).
