What is an offset mortgage?

An offset mortgage is a mortgage that’s linked to your savings or current accounts. Instead of earning interest on your savings, you pay less interest on your mortgage.

We take away the money in your linked savings accounts from your mortgage balance and only charge interest on what’s left. Your monthly payments will stay the same, even if your savings grow. But more of your payment goes towards clearing your balance, so you can pay your mortgage off faster.

Here’s an example

• You have a £250,000 mortgage
• You also have £50,000 in linked savings
• That means you only pay interest on £200,000
• Instead of reducing your payments, the money saved is used to pay off your mortgage sooner

View offset mortgage range

How to save with an offset mortgage

1. Apply - choose an offset mortgage when you switch your deal
2. Link - select up to 6 eligible bank accounts to offset – you can do this when you apply or call us afterwards
3. Save - we deduct what’s in those accounts from your mortgage balance and only charge interest on what’s left

Why choose an offset mortgage?

The best bits

• Pay less interest on your mortgage - the bigger your savings, the less interest you pay
• Same monthly payments - you’ll be mortgage free faster, because more of your payment goes towards clearing your balance
• Same access to your money - deposit or withdraw cash from linked bank accounts as normal
• Same flexibility - you can take payment holidays, overpay, or borrow back money you’ve overpaid (terms apply)

Good to know

• You won’t earn any interest on money banked in accounts linked to your mortgage
• You always need to make your full payment, even if your savings grow
• We're here to help - offset mortgages can be a bit complex, so if you're unsure, give us a call

Got a question?

Check out our offset mortgage help articles to find out more

• What type of accounts can I link to an offset mortgage?
• How can I open a new account to link to my mortgage?
• All offset mortgages help