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Offset mortgages

Our Offset product range offers your clients a mortgage with flexible features and easy access to their savings. An Offset mortgage links your clients’ Offset savings account to their mortgage to reduce the mortgage interest they're charged. So alongside their monthly capital repayment, your clients will only pay interest on the difference between their mortgage and their savings balance.

To help you understand how our Offset mortgage works and make it easier to explain to your clients, download our Offset mortgages factsheet (PDF 80KB)Opens in a new window now.

Here’s an example: Let’s say your client has a mortgage balance of £100,000 and an Offset savings balance of £20,000. We’ll use their £20,000 Offset savings, and only charge them mortgage interest on £80,000. So, the more they save, the less mortgage interest they're charged.

Give your clients more information about our Offset mortgage, download our Offset repayment mortgage guide (PDF 92KB)Opens in a new window.

How Offset works

Offset mortgage illustration

Please note: Your clients won’t benefit from any savings held in their Offset Savings account which are in excess of their mortgage balance.

Why is our Offset simple?

Our Offset is simple for three reasons:
  1. One linked savings account to one mortgage. This allows your clients to keep their savings in one, easy to manage account.
  2. Easy access to savings anytime. Your clients could use Online Services, telephone banking, Direct Debit, standing order, or make a withdrawal from a cash machine.
  3. Further borrowing at the same rate. Your clients can apply to borrow more at the same rate as their existing mortgage up to the maximum LTV of the product, subject to eligibility and lending policy.

What are the Offset benefits?

Using the funds in their Offset savings account, your clients can either:

Reduce their monthly mortgage payments: using the mortgage interest saved each month to reduce the monthly mortgage payment in the following month or the month after that, depending on when the payment is due.

Reduce their mortgage term: using the mortgage interest saved to reduce the outstanding capital each month and shorten the mortgage term.

Offset also provides your client with the flexibility to change between these options at the time.

Additional benefits

Offset also provides your clients with the following additional benefits:

No income tax liability: As your clients won’t receive interest on their Offset savings, there’s no income tax to pay.

Portability: If your clients wish to move home they may be able to take their Offset mortgage with them. We’ll transfer their current interest rate terms, and other scheme terms, to their new property subject to lending policy.

Flexible deposits: Your clients can pay into their linked savings account as often as they like; there’s no minimum amount of savings deposits required.

Optional benefits

Your clients could also take advantage of our varied product range and excellent service, including:

Standard valuation: You could save your clients money with one standard mortgage valuation (up to the value of £670) which may be included for purchase and remortgage.

Fixed and variable interest rates: With our Offset, your clients won't miss out on the certainty that a fixed rate brings - our portfolio typically provides a range of fixed and variable rates.

Remortgage Transfer Service: You and your clients can also enjoy the added convenience our Remortgage Transfer Service brings. Your clients may be able to take advantage of our quick and easy Remortgage Transfer Service when they transfer their existing mortgage to a new product with us.

Standard Residential lending policy at a glance

For a quick and simple overview of our lending policy download our Key Residential lending policy (PDF 54KB)Opens in a new window. All applicants' eligbility should be checked against our lending policy before submitting a case.

Useful information to give to your clients

Quick links