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Offset
Mortgages
With Offset mortgages, saving more could help you to make bigger savings on your mortgage payments, so choose a provider from our table and give them a call for the latest rates.
Search Mortgages
Editors Choice - NatWest Mortgages - Call 0800 158 2940
NatWest offer a comprehensive range of fixed, tracker, off-set and buy-to-let mortgages. Call NatWest on 0800 158 2940 to discuss (Lines open Mon-Fri 8am-8pm & Sat 9am-4pm)
Off Set Mortgages - Simply call the numbers to speak directly to the lenders listed below!
|
Lender |
Mortgage Name |
Initial Rate |
Subsequent Rate |
The Overall Cost for Comparison is |
Loan to Value |
Fees |
Get Quote |
|---|---|---|---|---|---|---|---|
 |
RBS One Account Offset Mortgage
|
3.75% (variable)
for term of mortgage
|
N/A
|
3.80%
|
75%
|
No Application Fee
|
Call One Account 0845 5648932 |
 |
RBS Offset Flexible Mortgage
|
3.75% (variable)
3.25% above RBS base rate for the entire term
|
n/a
|
3.90%
|
up to 75%
|
£499
|
Call RBS 0800 068 7683 Apply > |
 |
NatWest Offset Flexible Mortgage
|
4.00% (variable)
3.25% above NatWest base rate for the entire term
|
n/a
|
4.20%
|
up to 75%
|
£499
|
Call NatWest 0800 158 2940 Apply > |
The rates and products displayed within these tables are updated on a regular basis however due to the dynamic nature of the market some product details and rates may be out of date. We therefore do not take any responsibility for the accuracy of the information supplied within the table although we will always make our best endeavour to ensure that the information provided is as accurate as possible. You should always check rates and terms with the product provider.
The telephone-based mortgage advice service is provided by London & Country Mortgages Ltd., Beazer House, Lower Bristol Road, Bath, BA2 3BA. London & Country Mortgages Ltd are authorised and regulated by the Financial Services Authority. Their FSA number is 143002.
Offset Mortgages - What You Need To Know
Offset mortgage is a one of a kind mortgage, because they allow you to use your savings to offset the overall value of your mortgage.
This doesn’t mean losing all your savings but simply giving up any interest you would gain on it normally, which then cuts the amount of interest you pay on your mortgage.
Using your savings in this way also means you avoid paying tax on the interest you would normally have gained, because you are no longer earning from it. Not to mention the fact that with such a low interest rate environment any savings you have are essential earning you interest at a higher rate than most mainstream savings accounts would pay.
Because you only pay interest on the balance between your savings and mortgage debt you achieve the same effect as overpaying on a home loan, however you can get the money back should you ever need it!
If you had £5,000 savings and a £120,000 mortgage with an offset mortgage you’d only pay interest on £115,000. So that means more of your repayments will go towards paying the mortgage off so you can be free of your mortgage faster!
Some offsets allow you to link a current account and savings balances to the mortgage however some only allow you to use your savings pot. These both work in the same way but are sometimes described differently.
Simple offset deposits are usually kept in separate accounts but are linked so interest can be calculated. If you put more money on deposits your balance will lower and it will increase should you withdraw any.
There are lots on offset mortgage providers all offering different deals and different variations on structure and terms and conditions. This is why Which4u’s Offset Mortgage comparison is highly recommended to find the best deal suited to you.
As always, we recommend that you seek professional advice if you are unsure which type of mortgage is right for you and that all of the information provided above is for use as an overview only and should not be the basis for your mortgage decision.
Latest Offset Mortgage News 
-
Home buyers are opting for fixed-rate mortgage deals over variable or tracker rates as fears mount over rises in interest rates. Almost four ...Mon 16th Apr, 2012 -
Net lending for consumers and businesses remains 'subdued' on the back of the tough financial climate. Concerned consumers paid off more ...Thu 26th Jan, 2012 -
Huge household debts in the UK are just part of a chilling picture that sees overall debt levels in the UK and Japan soar far beyond all other ...Fri 20th Jan, 2012 -
Homeowners set to take out a new mortgage are likely to pay more than they would have done just a month, as mortgage lenders nudge up rates on ...Mon 5th Dec, 2011 -
New mortgage research data reveals some interesting insights into the current state of the market. Generally, the signs are positive. Figures ...Thu 10th Nov, 2011 -
The housing situation in Britain has received a boost after major lenders returned to the market with 90% mortgages. Lenders underwent a strict ...Mon 7th Nov, 2011
