Offset Mortgages

The basic principle of an offset mortgage is that you use what you have in savings and in some circumstances what is sat in your current accounts to reduce the mortgage balance you are charged interest on. This way you are required to pay the lender less by way of interest each month. You can either simply pay less each month or keep payments the same and shorten the mortgage term.

Any funds in your linked savings accounts or current accounts take effect straight away as offset mortgages calculate the balanced owed, less any amount in savings and current accounts on a daily basis. Plus, you have easy access to the savings should need to make a withdrawal.

By using the facility in the correct way, there are tax benefits too. These are particularly effective for higher rate taxpayers. Contact an advisor at Harvey Bowes for more information.

Who can benefit from an offset mortgage?

The short answer is anyone with savings or anyone who has money left over each month. It is particularly useful though for those who are focused on reducing their mortgage term as quickly as possible, or for those how to have a significant variation in income—perhaps because of bonuses or contract work.

Offset mortgages are also useful to those who are self-employed and pay an annual tax bill or for those who want quick access to emergency funds which could be repaid to the mortgage equally as quickly.

Talk to the Harvey Bowes team for the right advice on offset mortgages: Call 02921754150

Which lenders offer Offset mortgages?

There are a number of lenders who have products in this field.  In the view of Harvey Bowes, including our experience in lender processing and customer care in addition to continued competitive rates, these are the top lenders for offset and flexible mortgage products:

  • Abbey / Santander
  • Accord Mortgages / Yorkshire Building Society
  • Coventry Building Society
  • Leeds Building Society
  • Scottish Widows
  • Woolwich / Barclays mortgages


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


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