You can set up your account in three different ways to achieve your own desired outcome. Choose whether you want to benefit from a shorter term, reduced current payments or reduced payments in future years.
For more detailed information please take a look at our comprehensive guide, 'A guide to your Offset Options'.
And remember, you don’t have to stick to one option for the whole term of your mortgage; you can change between the options if your circumstances change. Just contact us when you want to discuss or arrange a different option.
The three options are:
As your monthly mortgage interest is reduced by your Offset savings balance, you can choose to pay monthly mortgage payments based on this reduced amount of interest; a net payment.
This means that your monthly mortgage payments are lower than they would have been without the benefit of your Offset savings. However, if you choose Option 1 your mortgage term will not reduce.
And if it's your first home, you might just want some breathing space until you get used to meeting your monthly bills. Offset Plus can help you here because the more savings you have linked to your mortgage, the lower your monthly mortgage payment will be. So by counting your savings, plus those of your family and friends, against your mortgage, Offset Plus would allow you to achieve an even lower monthly payment.
Unless you specifically choose one of the other options listed when you apply for your mortgage, it will automatically be put onto Option 2.
With this option your monthly payment (a gross payment) is based on the full mortgage balance like a traditional non-offset mortgage but your Offset savings reduce the interest charged on your mortgage, so you are effectively overpaying on your mortgage each month.
At Account Review your monthly payment is recalculated based on the reduced mortgage balance and remaining mortgage term. This should result in a reduced monthly mortgage payment after each Account Review provided you have maintained your Offset savings balance and interest rates have not increased. Please note, this option will not reduce your mortgage term.
With Option 3 you pay a fixed monthly amount (a static payment)that is more than the net payment and can be less or more than the gross payment.
This means that you are effectively overpaying on your mortgage and saving mortgage interest. If you have a repayment mortgage then you could also reduce your mortgage term. To take advantage of this, you need to contact us on 0845 1200 200 after your mortgage completes to register a static (i.e. fixed) payment. To ensure you continue to achieve the term reduction simply contact us after any rate change or change in your Offset savings balance to adjust the payment.
For further details please refer to our comprehensive guide, 'A guide to your Offset Options'.
Note: Whichever option you choose, should your savings balance or interest rate change, or if there are any other significant changes to your mortgage you should contact us to reassess your options and to ensure your monthly payment is sufficient to achieve your desired outcome.
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, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).