Offset Mortgages | Availability, costs and guides | YBS

Offset mortgages
Combine your mortgage and savings to potentially pay off your mortgage sooner or reduce your monthly repayments
There are three ways that you can make an Offset mortgage work for you
The benefits of these options are explained below:
Pay your mortgage off sooner
You benefit from paying off your mortgage quicker, but keep your monthly payments the same.
or reduce your monthly payments now
You benefit from lower mortgage payments now, but keep the same mortgage term.
or reduce your payments in the future
You benefit from lower mortgage payments every time your account is reviewed annually, but keep the same mortgage term.
How does an offset mortgage work?
The way offset mortgages work is simple. By moving some of your savings into a special Offset Savings Account linked to your Offset mortgage, the interest you are charged on your mortgage is determined by the difference between the amount in your savings and the amount in your mortgage.
So the more you save, the less interest you’ll pay on your mortgage.
Your Offset Mortgage and Offset Savings Account(s) remain separate, so you'll always have instant access to your savings if you need it. You can see how Offset mortgages work on the diagram below:

Offset Plus
Offset Plus is a great option that lets family and friends link their savings to your offset mortgage. With the help of their savings, you get an extra financial boost to help reduce the cost of your mortgage.
The more savings your family and friends link to your mortgage, the more you can reduce the interest payable on your loan.
Is an offset mortgage right for me?
See how an Offset mortgage could be the right choice for you and what you need to be aware of:
- The reduction in your mortgage payments or mortgage term could be worth more to you than the return you would otherwise have received from placing your savings in a deposit account.
- Whilst you can use your savings to reduce your mortgage interest, you will still have the flexibility to access your savings.
- However in doing so, you will change how much you could save on mortgage payments or the time it takes to repay your loan.
- Even if you don’t have a lot of savings, you can still benefit from linking the savings of family and friends with Offset Plus.
- You have the option to either fix the interest rate on your offset mortgage for a set time or for your interest rate to track the Bank of England Base Rate for a specified period of time.
- You have the right to repay the loan either partially or in full during the term of the loan.
- Early Repayment Charges apply during the fixed/tracker rate period. Other fees and charges apply.
Download and read our pdf guide:
Alternatives to offset mortgages
Fixed rate mortgages
Fix your mortgage interest rate, so it won’t change over a set period of time, regardless of what is happening to interest rates elsewhere.
Tracker mortgages
Link your mortgage repayments to the Bank of England’s base rate. The interest rate on a tracker mortgage changes with the Bank of England base rate, which means your payments could rise and fall.
Interest only mortgages
Make monthly payments to cover the interest you owe. In order to pay off the loan amount at the end of the term, you will need to have an acceptable repayment strategy.
Before you apply
You can use our mortgage calculators to get an idea of your mortgage repayments and how much you could borrow for your mortgage.
Call us or book an appointment
Speak to one of our friendly advisers about your options.