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:
- You have savings in a Barclays current account or Cash ISA
- You want the opportunity to pay off your mortgage earlier
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
Find out whether we’d be willing to lend to you in a matter of minutes through an Agreement in Principle. We’ll just ask you a few simple details about yourself, your income and regular spending. An Agreement in Principle doesn’t guarantee you’ll be successful – but it can help you get an idea of what we could lend you for a mortgage. You can get started online, call us or book an appointment in branch.
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.
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Initial interest rate
Follow on interest rate
Overall cost for comparison
Loan to value
Early repayment charge
*BBBR means the Barclays Bank Base Rate, which is currently 0.50% (effective 6 March 2009).
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?
If you have a question about mortgages, choose how you’d like to get in touch. You can also browse our mortgage FAQs . If you want help choosing the right mortgage for you, you’ll need to call us to speak to a mortgage adviser.
More ways to buy your home
Subject to status and availability. You must be 18 years old or over to apply for a mortgage.
- Lines are open Monday to Friday, 8am – 6pm and Saturday 9am – 5pm. To maintain a quality service, we may monitor or record phone calls. Call charges.
- 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.