You benefit from paying off your mortgage quicker, but keep your monthly payments the same.
You benefit from lower mortgage payments now, but keep the same mortgage term.
You benefit from lower mortgage payments every time your account is reviewed annually, but keep the same mortgage term.
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:
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 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.
See how an Offset mortgage could be the right choice for you and what you need to be aware of:
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 (104 KB) or here for more information.
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.
Mortgages that follow the Bank of England Base Rate - you could save money while the Base Rate remains low but your payments could also go up.
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.
You can use our mortgage calculators to get an idea of your mortgage repayments and how much you could borrow for your mortgage.
Speak to one of our friendly mortgage advisers about your options