Offset mortgage
Use your savings to reduce the length of your mortgage
If you have savings, why not take advantage of them? Linking your savings or current account to your mortgage could save you thousands of pounds in mortgage interest or reduce your mortgage term. You can still access your savings when you need to – but you won’t pay tax on them as they won’t be earning interest.
Learn how to make the most of your offset mortgage
Your home may be repossessed if you do not keep up repayments on your mortgage
Overview
| Product | Initial interest rate | Follow on interest rate | The overall cost for comparison is | Application fee | How much could I borrow? | Early repayment charge |
|---|---|---|---|---|---|---|
| 2 Year Offset Tracker |
3.29% (BBBR + 2.79%)
variable until 30 June '15 |
BBBR+ 3.39%, currently 3.89% variable for the remaining term* | 4.0% APR | £1499 | 70% (max) of the value of your home | 1% of the original balance upon full redemption until 30 June '15 |
| Lifetime Offset Tracker |
3.69% (BBBR + 3.19%)
variable for the term* |
N/A | 3.9% APR | £1499 | 70% (max) of the value of your home | 1% of the original balance upon full redemption until 31 Mar '16 |
| 2 Year Offset Tracker Barclays loyalty mortgages ** |
3.29% (BBBR + 2.79%)
variable until 30 June '15 |
BBBR+ 3.39%, currently 3.89% variable for the remaining term* | 3.9% APR | £749 | 70% (max) of the value of your home | 1% of the original balance upon full redemption until 30 June '15 |
How our Offset mortgages work
Let's say you have a mortgage of £180,000 and a total of £30,000 in your current account, savings and ISAs. You can offset the £30,000 against your mortgage so you only pay interest on the balance of £150,000. You won't receive interest on the linked accounts, so you won't be liable for tax on them either.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
A written personalised Key Facts Illustration is available from any Barclays branch, from Barclays Direct Mortgages on 0845 677 0002 4
or from this website.
Features of our flexible mortgage products:
- No Higher Lending Charge
- Applications are subject to status and a minimum age of 18
- Mortgages are subject to valuation (maximum loan-to-value 90% or less than 90% with a Mortgage Current Account with an agreed Reserve Facility)
- All flexible mortgages require a Barclays Mortgage Current Account
- A first charge over your property is required
- The mortgage is available on an interest-only and/or repayment basis. For an interest-only mortgage, it is your responsibility to ensure that you have sufficient funds to repay the mortgage at the end of its term
- Woolwich mortgages must normally be repaid by the time you retire or reach the age of 70 years, whichever is sooner, and are not available for business purposes
- We are a responsible lender and when considering your application for borrowing, your financial circumstances will be appraised. And remember, if you should run into difficulty, please contact us immediately
General information:
- Telephone calls may be recorded or monitored
- The property must be situated in the United Kingdom, which is England, Wales, Scotland and Northern Ireland. The Channel Islands and the Isle of Man are not part of the United Kingdom
- All rates and charges quoted are correct at time the site was last updated
- The mortgages featured are only available for residential purposes
- Woolwich Switch & Save mortgages are only available to new customers remortgaging to us from another lender, ie not Barclays or The Woolwich
- If you remortgage with us from another lender you may have to pay your present lender an early repayment charge
How to complain:
- We are committed to providing a high standard of service to you and all of our customers. However, we have a set procedure that enables us to investigate and sort out complaints quickly and fairly
- If you want to complain about this application or the service you've received, you may do so in person, in writing by post or email or by telephone
- Details of our complaints handling procedures are available on request from any branch, our Customer Service team on 0800 33 44 99 5 (Monday to Friday 9am-5pm) or by reading our Complaints Commitment.
You can download our tariff of charges for our mortgage range here.
Alternatively, you can get our tariff of charges in Braille, large print or audio tape/CD by calling 0800 400 100 5
Mortgage features
Linking your savings to your mortgage helps to make your money work harder. You can choose to link any of your Barclays Personal current accounts or ISAs and most of your Cash ISA to your offset mortgage to reduce the mortgage balance you are charged interest on. This could help you reduce your mortgage term or your monthly mortgage payments. Since interest is calculated on a daily basis, even savings held for a few days will reduce the mortgage interest in the following month.
- Use the offset benefit to reduce your monthly mortgage repayments or the term of your mortgage
- Only pay interest on the difference between your mortgage amount and the balances in your linked offset current, savings and ISA accounts
- Keep instant access to your savings and your historical tax-free ISA allowance
- Cash ISA accounts can be offset against a Woolwich offset mortgage – it could be ideal if you want to transfer in cash ISA balances to offset against your mortgage.
- Even though your current and savings accounts don't earn interest, they do reduce what you pay on your mortgage – you won't pay tax on your savings because it's not earning any interest
- Overpay as much as you like, whenever you are able (early repayment charges may apply on full redemption of your mortgage)
- Offset up to 12 eligible Barclays accounts for your different savings needs and use them all to reduce your mortgage payments or mortgage term
- Manage your mortgage online and make transfers when it suits you
Could be good for you if:
- You're looking to make your savings work harder
- You want the opportunity to pay off your mortgage earlier
Look at other options if:
- You want to fix your monthly repayments
Applying for a new mortgage
Switch mortgages
Request additional borrowing
0800 197 1081 1
Support for existing Woolwich mortgages
0800 022 4022 2
Looking for a different type of mortgage?
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– Enjoy the security of fixed repayments for a set period
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– Lifetime rates that reflect the market
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