
Offset mortgages
Combine your mortgage and savings to potentially pay off your mortgage sooner or reduce your monthly repayments.

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What is an offset mortgage?
An offset mortgage is a way of linking your mortgage with your savings to provide you with a way to use your savings to reduce the cost of your mortgage.
Instead of earning interest on your savings, you will reduce the amount of interest charged on your mortgage.
There are three ways that you can make an Offset mortgage work for you
The benefits of these options are explained below:
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:
If you have money in an offset savings account.
The savings will be offset against your mortgage.
So interest is only charged on the difference.
Offset calculator
You should also refer to our Offset calculator to see how an Offset mortgage could benefit you.
You’ll need to enter some details about your savings and mortgage requirements and we’ll show how an Offset mortgage could save you money.
Takes approximately 2 minutes to complete
Offset calculatorOffset 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.
Offset Plus for BorrowersThe more savings your family and friends link to your mortgage, the more you can reduce the interest payable on your loan.
Offset Plus savings accountIs 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.
Protecting your money: Deposits in the savings element of your Offset mortgage are covered by the Financial Services Compensation Scheme (FSCS), up to a total of £85,000 of the total deposits held with the following: Yorkshire Building Society, Chelsea Building Society, Norwich & Peterborough Building Society and Egg. Please refer to the FSCS Information Sheet (516 KB) or here for more information.
Download and read our pdf guide:
A guide to your Offset options (574 KB)