mortgages

make your money work harder. Offset your savings to reduce the amount of interest you pay on your mortgage.

• the ultimate flexible mortgage
• offset your 1st Account and day to day savings to reduce the cost of your mortgage
• make unlimited overpayments
• variable and fixed rates available - see our latest mortgage offers
• pay no tax on your savings - the higher your tax band, the more you stand to benefit.

with an offset Mortgage, you can link your first direct 1st Account balances and day-to-day savings balances to your mortgage - so you only pay interest on the difference.

For example, if you have an outstanding mortgage of £100,000 and savings of £10,000, you would only pay interest on a mortgage of £90,000. And because you're using your 1st Account and day-to-day savings account balances excluding the e-Saver Account and the Regular Saver Account to reduce the amount you owe on your mortgage, rather than earning credit interest, there's no tax to pay.

The amount of interest you pay each month is likely to vary, as it's linked to your fluctuating balances.

You can also transfer other borrowing into an account linked to your mortgage. Or you can redraw capital at any time, up to 80% of the value of your property. This will increase your interest payments and could increase the time it takes to pay off your mortgage. Any borrowing linked to your offset Mortgage will also be secured against your property.

You must, however, ensure that your monthly interest payments are met, and where the amount of the loan is higher than 80% of the property value, both capital and interest must be paid.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.