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Mortgages

Offset Mortgages - Offset Mortgage Rates

An offset mortgage allows your savings to be set against your mortgage, reducing the interest you pay on the net balance.  A savings account is set up alongside your mortgage, and the money in the account is ‘offset’ against the mortgage.

Offset mortgages can offer flexibility, tax efficiency, and help customers best use their income, for example those that earn annual bonuses.

You will not earn any interest on your savings, but you will not be charged any interest on the corresponding amount of your mortgage either. 

You can choose to use this saving to:
 

  • Reduce the term of your mortgage or
  • Reduce your mortgage repayments

The great news is that you still have instant access to your savings for as long as you have your Offset mortgage.

For example, on a £1,000,000 mortgage loan you can reduce your mortgage term by 10 months, by having £40,000 in savings (based on a 3.49% term over 25 years).  That’s without overpayments!

We often deal with customers with irregular income streams, i.e. those that are self-employed, shareholders or partners and directors.  We can arrange deals with private banks and offset mortgage providers not available on the High Street, and there are no upper limits on offset mortgages.  

Offset mortgages offer alternative to poor savings rates (this article originally appeared in the Financial Times on 26 March 2010)

Accessing your savings may increase your mortgage term or monthly mortgage repayments.

  • This Month's Top Fixed Rate

    Fixed rate
    Initial rate: 1.09%

    Period: 2 Year

    Rate will revert to the lender's standard variable rate currently 4.94%
    The overall cost for comparison is 4.33% APR

    1.09%

    More info
  • This Month's Top Variable Rate

    Variable rate
    Initial rate: 0.99%

    Period: 2 Years

    Rate will revert to the lender's standard variable rate currently 3.74% which will not go below a floor of 3.49% thereafter
    The overall cost for comparison is 3.36%

    0.99%

    More info

    Get This Rate


Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

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Tel: 020 7519 4900
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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt

Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk

Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission, reference number: 2269418, as a Non-Regulated Financial Services Business.

A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.

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