Compare Best Offset Mortgage Rates Offset mortgages allow you to use your savings to reduce the amount of interest you pay on your outstanding mortgage balance. Want free expert mortgage advice? Get free expert mortgage advice. In partnership with. How we order our comparisons.
Commission earned affects the table's sort order. Initial rate 1. Subsequent rate SVR 4. Overall cost for comparison 3. View deal. The initial rate will be followed by a rate of 3. More information. Early repayment charge If you pay all of your mortgage early you will be charged: - 2.
Initial rate 2. Early repayment charge If you pay all of your mortgage early you will be charged: - 5. Subsequent rate SVR 3. Early repayment charge If you pay all of your mortgage early you will be charged: - 3.
Initial rate 3. Check eligibility. Early repayment charge If you pay all or part of your mortgage early you will be charged: - 2. Overall cost for comparison 4. Early repayment charge If you pay all or part of your mortgage early you will be charged: - 5. Early repayment charge If you pay all or part of your mortgage early you will be charged: - 1. Load 25 more. Looking for another type of mortgage? What type of mortgage are you looking for? What is an offset mortgage?
How do offset mortgages work? Offset mortgages explained Offset mortgage options Paying less interest on your mortgage means you will pay less interest overall while you clear the balance. Offset mortgages usually let you choose between the following benefits: A shorter mortgage term, but the same monthly repayment amount - you'll pay off your mortgage more quickly and pay less interest as a result Lower monthly repayments - saving you money in the short term.
You pay less interest on your mortgage debt, meaning you will pay it off earlier, or you can choose to make smaller monthly payments You can still access your savings if you need to They can be tax efficient for higher rate taxpayers, as you pay no tax on savings in a linked savings account Some offset mortgages let you link up your current account as well as your savings account Most lenders let you make overpayments on an offset mortgage, allowing you to pay off your mortgage more quickly and cheaply.
Offset mortgage rates can be higher than standard repayment mortgages You need quite a lot in savings to really make a difference You won't earn interest on your money, which can be disappointing when interest rates are high Fewer lenders offer offset mortgage deals, so you may have little choice If the best offset mortgage rates are high, it may be better to use your savings to overpay a standard repayment mortgage instead. Can I have more than one account for an offset mortgage?
Is there a limit to the amount I can offset? What if my savings are higher than my mortgage balance? Can I get a buy to let offset mortgage? Can I get an offset remortgage? Like any mortgage, you still want to compare offset mortgages on which has the lowest rate. So you will want to consider how easily you can withdraw your money and any fees that may apply, as well as less concrete things such as customer service from your lender.
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We use cookies and similar technologies. You can use the settings below to accept all cookies which we recommend to give you the best experience or to enable specific categories of cookies as explained below. Find out more by reading our Cookie Policy. Compare offset mortgages Offset mortgages are offset by your savings, so you reduce the payment amount and interest charged on your mortgage. We found results for you. Repayment period years.
Payment type Repayment Interest Only. Scottish Widows Bank 2 year fixed remortgage. Initial rate. Monthly cost. Representative example:. Eligibility criteria. Eligibility You must meet the following criteria in order to get this loan: Are resident of England. This means that the child's interest payments will be smaller, potentially making it easier for them to pass the lender's affordability checks.
You might occasionally hear people talking about current account mortgages CAMs , although they're very rare in the current market. While an offset mortgage is linked to a separate bank account, a current account mortgage CAM combines your debts and savings into a single account. CAMs can sometimes include balances for loans and credit cards as well as your mortgage. Financial Services Limited. Financial Services Limited is a wholly-owned subsidiary of Which?
Limited and part of the Which? Money Compare is a trading name of Which? Money Compare content is hosted by Which? Limited on behalf of Which? Mortgage calculators. Compare Mortgages. In this article. What is an offset mortgage? Can you access your savings with an offset mortgage? Should you put down a bigger deposit instead of offsetting? Offsetting vs overpaying: an example.
Are offset mortgages tax-efficient? Takes approximately 2 minutes to complete Offset calculator. Offset Plus Offset Plus is a great option that lets family and friends link their savings to your offset mortgage.
Offset Plus for Borrowers The more savings your family and friends link to your mortgage, the more you can reduce the interest payable on your loan. Offset Plus savings account. Is an offset mortgage right for me? See how an Offset mortgage could be the right choice for you and what you need to be aware of: The reduction in your mortgage payments or mortgage term could be worth more to you than the return you would otherwise have received from placing your savings in a deposit account.
Whilst you can use your savings to reduce your mortgage interest, you will still have the flexibility to access your savings. However in doing so, you will change how much you could save on mortgage payments or the time it takes to repay your loan. You have the option to either fix the interest rate on your offset mortgage for a set time or for your interest rate to track the Bank of England Base Rate for a specified period of time.
You have the right to repay the loan either partially or in full during the term of the loan. Other fees and charges apply.
Download and read our pdf guide: A guide to your Offset options KB. Speak to one of our friendly mortgage advisers about your options. Request an appointment.
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