02/11/2026
Your savings sit in one account. Your mortgage sits in another. What if they were on speaking terms? 🤝
That's the idea behind an offset mortgage. Your savings are linked to your mortgage and, instead of earning interest on them, their balance is set against what you owe. You only pay interest on the difference ❗️
For example, with a £180,000 mortgage and £20,000 in a linked savings account, you'd pay interest on £160,000. Your savings are still yours, and you can usually dip into them if you need to, although you'd then be paying interest on more of the mortgage again.
Depending on the lender, you might keep your monthly payment the same and clear your mortgage sooner, or use the offset to bring your payments down.
It isn't for everyone. Fewer lenders offer offset deals and the rates can be a little higher than comparable standard mortgages, so it tends to suit people who keep a healthy amount in savings. If you're buying soon or your deal is up for renewal, it's a question well worth asking 😊
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Your home/property may be repossessed if you do not keep up with the repayments on your mortgage.
