How you could save with an offset mortgage

• Have excess funds left in your current account to put in your savings
• Already have savings – as you can have these working for you at the full mortgage rate by offsetting them
• Are looking to reduce your mortgage – you can do this by either regularly saving and offsetting or making as many capital overpayments as you like
• Require flexibility to access your Barclays savings and current accounts whenever you want – you can dip in and out as you need and even transfer money online between accounts
• Have unpredictable cash flow – if you are self-employed, receive occasional large bonuses or commission, or work on highly-paid short-term contracts, any large sums you receive will start working hard for you immediately as your interest is calculated daily. This could also be the case with other sources of income such as rent
• Are a higher rate tax payer – you will not pay any tax on interest you would have earned on your savings or current accounts
• Save regularly towards your annual tax bill – as you can have this money working efficiently all year to reduce your mortgage payments.

Download a copy of our Offset Brochure 1.15 MB for more information on Offset mortgages.

To help bring to life the benefit of Offset, read our Offset example illustrations - see if you recognise yourself in them.

If I have chosen to reduce my monthly payments, how will I know what I'm paying each month?

We'll send you an Offset statement at the end of each month showing a daily breakdown of the Offset benefit you have earned from any accounts you have linked to your mortgage.  This statement will also show the monthly payment that we will collect by direct debit on the 16th of the following month. 

What will my payment be in the month my mortgage completes?

As your mortgage can complete at any time during the month we will not collect your first payment until the following month.   However, you will begin to earn Offset benefit on the total balances in the accounts that you have linked to your mortgage.

What will I pay in the month after my mortgage completes?

In the first full month after your mortgage completes, the payment you will have to make is a full contractual monthly payment (as stated on your mortgage illustration) plus any mortgage interest carried forward from the month when your mortgage completed.

Your first monthly payment will be reduced by the Offset benefit you have earned by the end of the month when your mortgage completes.  This is because each monthly payment is reduced by the amount of Offset benefit that you have earned in the previous month.

What will I pay each month thereafter?

Each of the following monthly payments will be reduced by the Offset benefit earned during the previous month.  If the total balance held in your offset accounts fluctuates during the month, this will be reflected in the following month’s payment.