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What is an offset mortgage?

An offset mortgage is a mortgage that’s linked to your savings or current accounts. Instead of earning interest on your savings, you pay less interest on your mortgage.

We take away the money in your linked bank accounts from your mortgage balance and only charge interest on what’s left. Your monthly payments will stay the same, even if your savings grow. But more of your payment will go towards clearing your balance, so you can pay your mortgage off faster.

Offset mortgage example:

  • You have a £250,000 mortgage
  • You also have £50,000 in linked savings
  • That means you only pay interest on £200,000
  • Instead of reducing your payments, the money saved is used to pay off your mortgage sooner

Offset mortgage benefits

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Mortgages are secured on your home. Applicants must be 18 or over. All loans are subject to status.

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