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Offset mortgages

Put your savings to work with an offset mortgage

Linking savings accounts to an offset mortgage could make your money work harder by reducing the mortgage balance you pay interest on.

  • You could save thousands of pounds in mortgage interest
  • Use the savings to reduce your mortgage term or monthly payments
  • Keep instant access to your savings, which you’ll no longer have to pay tax on

Your home may be repossessed if you do not keep up repayments on your mortgage.

What is an offset mortgage?

An offset mortgage links your current and savings account balances to your mortgage in order to reduce the mortgage balance you’re charged interest on. So, if your mortgage balance is £125,000 and you have £25,000 in your linked current and savings accounts, we’d calculate your monthly mortgage interest on £100,000 instead of the full mortgage balance of £125,000.

You can use the offset savings in one of 2 ways:

Reduce your mortgage payments

The interest you save in one month by offsetting could reduce your mortgage payment the following month.

Reduce your mortgage term

Keep your monthly mortgage payments the same and pay off your mortgage sooner.

Is it right for you?

An offset mortgage could be right for you if:

How much can you borrow?

Use our offset mortgage calculator to see how your savings could reduce your mortgage term or your monthly payments.

How to apply

Our mortgage calculator can help you work out how much you can afford to borrow. You can then complete an Agreement in Principle (AiP) to find out whether we’d be able to lend the amount you need – without affecting your credit score. If we can, the next step is to make an appointment with an adviser to apply for a mortgage.

Our current rates

This table outlines what the initial interest rate will be, as well as the follow-on rate, the amount you can borrow and any application and early repayment charges. You can sort any of the columns by selecting the column title.

You can save a copy of our Tariff of mortgage charges and read our important legal information.

Are you a Premier customer? See our exclusive mortgage range.

The current mortgages data is unavailable. A complete list of all mortgage rates is available for download here.

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Product name

Initial interest rate

Follow on interest rate

Overall cost for comparison

Loan to value

Mortgage fee

Early repayment charge

*BBBR means the Barclays Bank Base Rate, which is currently 0.50% (effective 6 March 2009).

Representative example:

A capital and interest mortgage of £131,500 payable over 25 years on our variable tracker rate of 1.49% above the Barclays Bank Base Rate (currently 0.5%) for 2 years, and then a variable tracker rate of 3.49% above the Barclays Bank Base Rate for the remaining term would require 24 monthly payments of £556.73 and 276 monthly payments of £682.87.

The total amount payable would be £202,947.64 made up of the loan amount plus interest and £999 (product fee), £80 (final repayment charge), £35 (completion fee).

The overall cost for comparison is 3.8% APRC representative.

Need some help?

You can talk to us about our mortgages online, in branch or over the phone at a time that suits you.

Call us on 0800 197 1081 1

More ways to buy your home

Fixed-rate mortgages

Fix your monthly mortgage payments for a set term so you can budget with confidence.

Tracker mortgages

Take advantage of the current low base rate with our range of tracker mortgages.

Family Springboard

A way for families to help you get on or move up the property ladder.

Important information

Subject to status and availability. You must be 18 years old or over to apply for a mortgage.

  1. Lines are open Monday to Friday, 8am – 9pm, Saturday 9am – 8pm and Sunday 10am – 4pm. To maintain a quality service, we may monitor or record phone calls. Call charges.