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Accord Mortgages Products with Offset

A selection of our Prime products offer a straight forward offset facility with up to 3 savings accounts linked to your client's mortgage. The savings are then offset against the mortgage so that your client doesn't earn savings interest, instead they benefit from paying reduced mortgage interest.

For example:

Mortgage balance: £200,000
Savings balance £15,000
Interest paid on £185,000 (£200,000 - £15,000)

The loan can be taken on 1 or more products. However, where an offset mortgage is taken, all parts must be offset products.

Designed to be simple

We don't ask your client to open a current account or take out a credit card.
We don't insist that salary credits are paid into the savings account.
We don't ask for a minimum deposit to be paid into the savings account.

Your clients options

Your client can choose whether they want to benefit from a shorter term, potentially saving thousands in interest, reduced current payments or reduced payments in future years. Your client can swap between these three options as often as they wish.

Option 1 - Reduced current payments (the net payment option)

As your client's monthly interest is reduced by their savings, they can choose to pay only this reduced amount.
Monthly payments are less than they would have been without the benefit of the offset savings.
This option will not however, reduce the mortgage term.

Option 2 - Reduced payments in future years (the gross payment option)

Unless your client tells us they would like to choose one of the other options the mortgage will automatically be put onto this option.
The monthly payment is based on the full mortgage balance.
The savings reduce the interest charged on the mortgage so your client is effectively overpaying each month.
At Account Review the monthly payment is recalculated based on the reduced mortgage balance and remaining mortgage term.
This should result in a reduced monthly payment after each Account Review but won't reduce the mortgage term.

Option 3 - Reduced term (the static payment option)

Your client pays a fixed monthly amount that is more than the net payment and can be less or more than the gross payment.

Your client is effectively overpaying and could potentially save thousands in mortgage interest.
If your client has a repayment mortgage they could reduce their mortgage term. To take advantage of this, your client should contact our Customer Queries Line, after completion to register a static (i.e. fixed) payment.

Features of the savings account

Postal savings account:
- Credits can be sent by cheque or direct to the account via BACs from your client's account
- Debits must be requested by posting a signed withdrawal slip and can be sent to your client by cheque, or direct to a nominated bank account.
No interest is earned on the savings, but the interest charged on the mortgage is calculated based on the difference between the offset mortgage balance and the offset savings balance.
Up to three savings accounts can be linked to the offset mortgage.
Maximum balance allowed is 100% of the offset mortgage balance.