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?
Put simply, it's a way of combining your savings with your mortgage. The way it works is simple - by moving some of your savings into a special Offset Savings Account, instead of earning interest, your savings reduce the amount of interest you pay on your mortgage.
You can choose to either:
Reduce the cost of your current mortgage payments
Reduce the cost of your mortgage payments in the future
Reduce the term of your mortgage
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 reduced term.
You can take your Offset mortgage deal with you if you move home.
You can open up to 3 separate Offset Savings Accounts, linked to your mortgage.
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.