Offset Mortgages

Whether you already have an Offset Mortgage or you'd like to know how they work, our handy guide can help

Important information - Please note we do not currently offer offset mortgages for Buy to Let.


What does offset mean?

Offset mortgages link your mortgage to your savings. 

When you take out an offset mortgage with us, we’ll set up a savings account for you with Yorkshire Building Society (YBS). 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.

We'll set up your offset savings account with YBS. We'll be a trustee on the account, which means we hold the account for your benefit. Your savings account management, transactions and payments will be done directly with YBS.

You can choose to either:

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Reduce the cost of your current mortgage payments
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Reduce the cost of your mortgage payments in the future
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Pay the mortgage off sooner

What are the benefits?

  • You can overpay, underpay or take payment holidays (interest continues to be charged during payment holidays).
  • You retain the option to switch between reduced current payments, reduced payments in future years, or paying off your mortgage sooner.
  • You can take your Offset mortgage deal with you if you move home.
  • Your mortgage can have up to three separate Offset Savings Accounts linked.

Combining your savings and mortgage

Your Offset Mortgage Account and your Offset Savings Account remain separate, so you'll always have instant access to your savings. However, they are linked because you only have to pay interest on the difference between the amount in your savings and the amount of your mortgage. This means that the more you save, the less interest you'll pay on your mortgage.


What's next?

I already have an Offset Mortgage

Log in to your online account to view your Offset mortgage and any linked Offset Savings Accounts.

You can view your balance and account statements, and transfer money.
 

I don’t have an Offset mortgage

If you don't have an Offset Mortgage but you are interested in switching to Offset when your current deal runs out, you can read our guide to changing your mortgage deal:
 

Disclaimer

Your property may be repossessed if you do not keep up repayments on your mortgage.

 

Useful information

Our downloadable guides have all the information you need on our products, how to manage your account and much more.

View all literature

 

Important things to remember

  • We only offer our own products

  • You can obtain an illustration on any product you may be eligible for by calling us on:  
    0345 1200 891