“An offset is one of the most hard-working but under utilised products in the mortgage market.”
A quote from a leading mortgage journalist.
It works by offsetting any money you hold in a linked current bank savings account against the mortgage balance before the monthly mortgage interest payments are calculated. This means you pay less mortgage interest each month and because you gain no interest on the savings in the bank account you also pay no tax on the on the savings.
Its a very tax efficient way of combining mortgage and savings accounts.
For it to work effectively, it is generally accepted that the amount of savings you use to offset must be “significant”
Best to get a free quote and see the benefits for yourself.
Mortgages with an offset facility attached – Yorkshire Building Society, Leeds Building Society, First Direct, Scottish Widows, Norwich and Peterborough Building Society, Woowich, Market Harborough,
It may be easier to use a broker (click above) to get all the quotes in a single format that makes it simple to compare them.
A good offset mortgage calculator can be found here: