What is an offset mortgage?
An offset mortgage is a way of linking your mortgage with your savings to reduce the amount of interest you pay.
Instead of earning interest, your savings offset some of the amount you have borrowed on your mortgage. This reduces the amount of interest you’re charged on your mortgage. However, the interest rate on an offset mortgage is likely to be higher than on a non-offset mortgage.
Watch our video and learn about offset mortgages in one minute.
To find out how an offset mortgage could work for you, try out our offset mortgage calculator.
To better understand how offset mortgages work and discover your options you can read:
How to get an offset mortgage
Get a Decision in Principle (DIP)
You may need a DIP to make an offer on a home.
Apply for a mortgage
If you have less than 10% deposit, you'll need to apply over the phone.
Get your mortgage offer
Complete
Get the right advice
Offset mortgages can be complicated. Make sure you fully understand your mortgage deal.
Linking your savings to your mortgage will reduce the interest you pay.
But, while your savings are linked they will not earn any interest. So, you may not always save money. You could also end up paying more if you take your savings out.
If you need help understanding offset mortgages, please apply over the phone. Our friendly mortgage specialists will be happy to chat about your options.
Get a Decision in Principle
Apply online
Speak to an expert
More about offset mortgages
Offset Plus
Offset Plus lets family and friends link their savings to your offset mortgage. This may help you reduce the cost of your mortgage.
Offset Plus for mortgage holders
Link up to two Offset Plus savings accounts to your offset mortgage.
Find out more about How Offset Plus works for mortgage holders.
Offset Plus for savers
Family or friends can link an Offset Plus Savings account to your mortgage.
Find out more about Offset Plus for Savers.
Financial Services Compensation Scheme
More about the Financial Services Compensation Scheme.
If Yorkshire Building Society were to fail, funds held in an Offset savings account would not be offset against the linked Offset mortgage account. This means the mortgage balance would remain separate and would not be reduced by the savings balance.
The first £85,000 (per person) held in the Offset savings account would be covered by the Financial Services Compensation Scheme (FSCS). The £85,000 limit is for all deposits which a person holds with Yorkshire Building Society, so any other savings accounts would need to be taken into account. As with any savings account, funds not covered by the FSCS would need to be claimed through any insolvency proceedings.