Offset Mortgages

We know some clients want to make use of their own or their family's savings in their mortgage.

Our offset mortgages allow your client to deposit savings into an offset account alongside their mortgage, allowing us to offer balance reduction and payment reduction options on their mortgage, calculated against the savings.

Make your clients' savings work harder

What products can I choose?

We have a number of mortgage products available.

See our current range of Offset mortgage products


How offsetting works

An Offset mortgage works in a similar way to a standard mortgage. However, it has an additional feature known as an Offset Saver savings account. This savings account is linked to the mortgage. The amount of money in the Offset Saver savings account is deducted from the mortgage on which interest is charged. There is no tax to pay on the money held within - however the future tax treatment of offset accounts may vary. Interest will not be earned on the Offset Saver account while it's linked to the mortgage.

Clients can take money out of their Offset Saver account at any time up to a limit of £25,000 per day and subject to keeping a minimum balance of £100. Of course the money taken out will no longer offset their outstanding mortgage. Only the money held in the account will count to reduce interest payable for the mortgage

Your client can choose to offset their savings to either reduce the balance of their mortgage (Repayment mortgages only) or reduce their monthly payments.

 

Watch our short video that explains how the Offset Mortgage works:

Unique Features of an Offset Mortgage

Balance Reduction

With this option the offset savings are used to pay off the mortgage earlier. The interest saved by offsetting the savings means more is paid back each month, and the mortgage balance should reduce faster and may be paid off sooner. Compared to the payment reduction option, the monthly payments will stay the same.

Payment reduction

Payment Reduction

With this option the offset savings are used to lower monthly payments, but the mortgage won't be paid off sooner. Interest saved each month will be used to reduce the amount of the next month's mortgage payment, so a greater offset will mean lower monthly payments.

Our Offset mortgage products available

Sort products by:
Initial
Rate		 Initial
Rate Ends		 Follow On
Rate		 Max.
LTV		 Application
Fee		 Product
Fee		 Cashback on
Completion		 Repayment Interest
Only		 FTB

5.79% Offset (2.25% discounted rate from follow on rate) for 2 years (XO0071)

 Code XO0071
2 years 8.04% 60% £175* £999~ £600^ Yes No No  
More details, fees & downloads Criteria A-Z Check affordability DIP Request Illustration Request Contact your BDM Online Application
  • Purpose - Offset applications for Purchase and Remortgage
  • Options Available - Payment reduction or Balance reduction
  • Discount - 2.25% applied to our Managed Flexi Mortgage Rate for 2 years
  • Minimum Rate - 3.79%
  • Loan to Value - Maximum 60%
  • *Application Fee - £175 + Valuation Fee
  • Valuation Fees - 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 - £500 for Remortgages and £100 to open and fund linked Offset Saver account
  • Early Repayment Charges - 2% in the first year, 1% in the second year
  • Maximum Loan - No maximum. Loans above £500,000 should be referred to us for specific agreement before submission of an application
  • Minimum Loan - £45,000 for Purchase and Remortgage
  • Cost for comparison - 7.7% APRC

5.89% Offset (2.15% discounted rate from follow on rate) for 2 years (XO0072)

 Code XO0072
2 years 8.04% 80% £175* £999~ £600^ Yes No No  
More details, fees & downloads Criteria A-Z Check affordability DIP Request Illustration Request Contact your BDM Online Application
  • Purpose - Offset applications for Purchase and Remortgage
  • Options Available - Payment reduction or Balance reduction
  • Discount - 2.15% applied to our Managed Flexi Mortgage Rate for 2 years
  • Minimum Rate - 3.89%
  • Loan to Value - Maximum 80%
  • *Application Fee - £175 + Valuation Fee
  • Valuation Fees - 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 - £500 for Remortgages and £100 to open and fund linked Offset Saver account
  • Early Repayment Charges - 2% in the first year, 1% in the second year
  • Maximum Loan - No maximum. Loans above £500,000 should be referred to us for specific agreement before submission of an application
  • Minimum Loan - £45,000 for Purchase and Remortgage
  • Cost for comparison - 7.8% APRC


All of these mortgage products have limited funds available and may be withdrawn at any time. Our mortgages are available to applicants aged 18 and over for properties in England or Wales. Products require linked Offset Saver to be opened. For remortgage applications we offer assistance with legal fees. Not available for Expats or for mortgages held in trust.

Criteria checker

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Simply type your criteria to see our levels of acceptance and flexibility.

Find Your Local

Business Development Manager

Your Local BDM:

Sam Morrison

Working out of our head office, as our phone-based BDM in Epsom, Sam has a wealth of knowledge regarding our processes and criteria and covers a variety of postcodes across the UK.
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Your Local BDM:

Neil Cadwallader

Neil has over 19 years experience in Financial Services from pensions and investments to mortgages. Neil focuses around South Wales and the West of England area. Contact Neil for help with your clients' mortgages.
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Your Local BDM:

Stuart Heavens

Stuart focuses on the South Coast area. Contact Stuart for help with your clients' mortgages.
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Your Local BDM:

Amar Mashru

Amar focuses on the Central London area. Contact Amar for help with your clients' mortgages.
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Your Local BDM:

Arif Kara

Arif was previously a mortgage adviser, and focuses on North and West London. Contact Arif for help with your clients' mortgages.
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Your Local BDM:

Nathan Waller

Nathan, previously a mortgage broker, focuses on Cambridgeshire, East Sussex, Essex, Suffolk, Hertfordshire, Bedfordshire, Lincolnshire, Norfolk and Kent. Contact Nathan for help with your clients' mortgages.
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Your Local BDM:

Grace Bennett

Grace focuses around the West M25 area. Contact Grace for help with your clients' mortgages.
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Your Local BDM:

Gina England

Gina has a vast amount of experience with both simple and complex lending solutions. If you're in the East or West Midlands, please contact Gina for help with your clients' mortgages.
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Your Local BDM:

Paul Roberts

Paul has over 30 years' experience and focuses on the North (inc. M62 corridor), Yorkshire and the North East. Contact Paul for help with your clients' mortgages.
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We do not currently have a BDM covering your area. Please contact our Mortgage Helpdesk:

Opening hours: Monday - Friday: 9am - 5.30pm. Saturday: Closed

We may record any telephone calls we have with you in the interest of staff training, monitoring customer service or for security purposes.

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