2.74% 2 year discounted rate Offset Mortgage - XO0031

Our Offset Mortgage is aimed at people wanting to make better use of their savings whilst keeping their money available for other purposes. It is available for property purchase or remortgage and can also be used by the self-employed and first time buyers and other borrowers whose family members wish to help them reduce the cost of owning their home.

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Rate Duration
Follow On
Cashback on
Repayment Interest
2.74% 2 years 4.49% 60% £175* £999** £250^ Yes No Yes
  • Discount - 1.75% applied to our Flexi Managed Mortgage Rate for the first 2 years
  • Maximum loan - No maximum. Loans above £500,000 should be referred to us for specific agreement before submission of an application
  • LTV - Maximum LTV 60%
  • Early Repayment Charges - 2% in the first year, 1% in the second year
  • Cost for comparison - 4.1% APRC
  • Minimum interest - 2.64%
  • Purpose - Purchase, remortgage, product switch and additional borrowing
  • *Application Fee - £175 + Valuation Fee
  • Valuation Fee - Free for properties up to £500,000. For properties above £500,000 the standard valuation fee scale applies, less £330 discount
  • **Product Fee - £999 for loans up to £500,000. For loans above £500,000 0.3% of the loan amount
  • ^Cashback - Payable on completion: £250 for remortgages and £100 for purchases
  • Options available - Term Reduction and Payment Reduction
  • Additional criteria - You are required to open an Offset Saver account in conjunction with this mortgage. On completion of the mortgage, a cashback amount will be used to open your linked Offset Saver account: £250 for remortgages and £100 for purchases
  • Additional features - Overpayments and partial capital repayments allowed. Overpayments build up a credit position to be used for future underpayments, payment holidays and borrow back - allowed to the remaining value of previous overpayments with our prior agreement. 100% of the loan amount can be offset
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Minimum Documents You'll Need From Your Client

All applicants

  • ID documents if the electronic check we carry out on all our applicants fails
  • Three full months most recent consecutive bank statements for all current accounts, to evidence all income and outgoings
  • Bank statements must show the applicant's name, account number, sort code & bank logo

Property or investment income applicant

  • Two years most recent SA302s

Employed applicant

  • Three months most recent payslips
  • Most recent P60

Self-employed applicant

  • Two years most recent accounts or two years most recent SA302s / Tax Calculations (100% Completed) or FBS Accountants Certificate
  • Accountant’s details on the application form

Applicant is already retired or if the term goes beyond retirement or age 70

  • Most recent Pension Statement or letter from Department for Work and Pensions
  • Most recent annual Pension Statement
  • Most recent P60

Applicant renting current home

  • 12 months bank statements showing rent payments

Applicant already has a mortgage

  • We require proof of mortgage payments. We carry out an electronic credit check on all applicants which usually confirms this. However if this fails, we will need proof. This can be provided from 12 months bank statements, the latest mortgage statements, or a combination. To speed up our underwriting, you can provide these on submission

Applicant has background BTL(s)

  • Evidence of rent being paid in and mortgage being paid out (bank statements requested above may already cover this)

Applicants with purchase deposits

  • Evidence of deposit in an account held by the applicant(s)
  • For gifted deposits, we require evidence of the funds in a UK account and the giftors details (name, date of birth, relationship to applicants)
Fees for this product

Standard fees

  • *Application Fee - £175 for purchase and remortgage + Valuation Fee. £125 for additional borrowing. No fee for product switch
  • Valuation fee - Free for properties up to £500,000. For properties over £500,000 the standard valuation fee scale applies, less £330 discount.
  • **Product fee - £999 for loans up to £500,000. For loans above £500,000 0.3% of loan amount. No fee for additional borrowing or product switch
  • Expat fees - Not available for Expats

Procuration fees (gross paid)

  • Directly authorised brokers submitting business to us directly - 0.50%, min £225.00
  • Submitting a case via Mortgage Clubs - 0.52%, min £234.00 (Mortgage Clubs will deduct 0.02%)
  • For additional borrowing and product switch fees and further fee information click here

Criteria checker

Can we help your client? Use our tool to find out.
Simply type your criteria to see our levels of acceptance and flexibility.

Affordability Calculator

Find out how much your residential client may be able to borrow. To see affordability for a Buy to Let client, use our Buy to Let calculator