Use your savings to reduce your interest payments
Our Offset Mortgage takes into account other money you have with us when working out your interest payments. So every pound that’s in an eligible savings or current account with us, is one less pound you’ll pay mortgage interest on. Say you have a £100,000 mortgage, savings of £20,000 and a current account with £1,000 in it. You’ll only pay interest on the difference between the money you have and the money you owe – which in this case is £79,000.
Offset Mortgages are interest only mortgages, which means you’re responsible for paying off the capital. You’ll need to show you have a sound plan in place to achieve this – it could be an endowment policy, an investment or another savings plan.
Things to bear in mind
- applicants must have a sole salary of £50,000 or a joint salary of £75,000 (or less if one of you earns £50,000 or more)
- we don’t lend for business purposes or Buy to Let
- Early Repayment Charges may apply depending on your interest rate or if you pay it all off early
- the value of tax benefits will depend on your individual circumstances and tax rules may change in the future
- you can redraw any capital you’ve paid off, but you must make sure you can still repay the outstanding capital by the end of the mortgage term
- any borrowing linked to your Offset Mortgage will be secured against your property.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
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Is a Repayment Mortgage more suited to you?
Simple and straightforward – your monthly repayments make sure both the interest and the money you’ve borrowed are paid off by the end of the mortgage term.