Offset Mortgages

Our Offset Mortgages are no longer on sale to new customers. But if you already have one you may still be able to make certain changes to it, like moving to a new rate or reviewing your term, by giving us a call.

It’s also worth bearing in mind:

• as your Offset Mortgage is interest only, you’ll need to give us regular updates on how you plan to repay the balance at the end, for example, by using your savings or investments, an endowment, or the sale of another property
• it’s important you review your repayment plan regularly and make adjustments along the way to make sure you’re on track to repay your mortgage in full at the end of its term
• we can’t give advice on the suitability of a repayment plan.

If you have any concerns about repaying your mortgage by the end of its term, discover your options and how to get free advice on the Financial Conduct Authority’s information sheet Opens an overlay [Will show a security message first].

Our Offset Mortgage takes into account other money you have with us when working out your interest payments. So, every pound that’s in a linked savings or current account with us, is one less pound you pay mortgage interest on. For example, if you had a £100,000 mortgage, savings of £20,000 and a current account with £1,000 in it and they were linked, you’d only pay interest on the difference between the money you have and the money you owe – which in this case is £79,000.

You can find more information on the benefits of Offsetting and linking accounts on our Offset Mortgage factsheet.

And just so you know:

• you can use your account balances and savings by linking them to reduce your interest payments
• you can make unlimited overpayments at any time but if you pay your mortgage off in full, Early Repayment Charges may apply
• if you repay any of your mortgage balance, you can redraw it whenever you like but you’ll still need to repay the mortgage balance in full by the end of its term
• redrawing will increase your interest payments and could increase the time it takes to pay your mortgage off
• the value of tax benefits will depend on your individual circumstances and tax rules may change in the future
• any borrowing linked to your Offset Mortgage will be secured against your property.

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