Offset Mortgage

An offset mortgage is a type of mortgage that involves blending a traditional mortgage with one or more deposit accounts held by the same financial institution.

With offset mortgages, You can reduce the amount of interest you pay by offsetting any credit balance you may have with the same lender/ bank towards your mortgage. Some lenders may allow this via single account ( which is usually a current account) and some via multiple accounts with the same lender.

To understand whether it is right mortgage option for you or not, Book an appointment with our experienced mortgage brokers & advisors in London & Essex. They will help you understand the right mortgage option for you. Being whole of market mortgage broker, we can get you most suitable mortgage rates, deals and offers which suit your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Offset Mortgage's FAQs

A mortgage tied to one of your savings accounts is an offset mortgage.

The FSCS gives protection for eligible deposits with the bank or building Society. The FSCS provides coverage for this savings plan.

Up to four borrowers may be included in an Offset mortgage.

Lenders ‘ deduct’ the amount in your savings account from the amount you owe on your mortgage and charge the interest on the remaining amount on the mortgage.

Usually, the advice is to pay more than necessary if you have the option.

Keep adding to your savings to lower your interest rate.

Your savings account for an offset mortgage may still allow deposits and withdrawals.

With a family offset mortgage, the savings account—sometimes called an “offset account”—is held in the name of the mortgage owner and not the family member contributing the savings.

Higher-rate taxpayers liable to the Personal Savings Allowance, which requires them to pay tax on any interest generated that exceeds £500 annually, may find offset mortgages highly beneficial.

When offset mortgages give you greater flexibility, their interest rates are frequently higher than those on traditional mortgages.

If you use your savings to pay for an offset mortgage, no interest will be earned.

Higher-rate taxpayers who are liable to the Personal Savings Allowance, which requires them to pay tax on any interest generated that exceeds £500 annually, may find offset mortgages to be very helpful.


    Mountview Financial Solutions is a trading style of Rosemount Financial Solutions Ltd who are an appointed Representative of Quilter Financial Services Ltd and Quilter Mortgage Planning Ltd, which are authorised and regulated by the Financial Conduct Authority. Registered as a company in England and Wales No. 5676603. Registered Office: Rosemount House, 2-4 Chequers Road, Basingstoke, United Kingdom, RG21 7PU.

    The Financial Conduct Authority does not regulate advice on deposits or National Savings & Investments products, Tax Planning, Trusts, Buy to Let Mortgages, Auto-Enrolment, Estate Planning and Wil writing.

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