Cashback Remortgages · Mortgage rates
Offset Mortgages Explained
An offset mortgage links your savings to your mortgage so you pay interest only on the difference. It can suit some savers, with trade-offs to weigh.
How offsetting works
Your linked savings reduce the balance that interest is charged on — for example £20,000 of savings against a £200,000 mortgage means you pay interest on £180,000. You keep access to the savings, which is the appeal.
You forgo interest on the savings instead of earning it.
Who it suits
Offset can suit those with meaningful savings, particularly higher-rate taxpayers, who value flexibility. Offset rates can be higher than standard deals, so compare the overall benefit.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.