• Mortgages
  • Credit Cards
  • Loans
  • Investments
  • Life Insurance
  • Home Insurance
  • Insurance


New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Financial Services > Mortgages > Offset Mortgages > Offset Mortgage Benefits

Offset mortgage Benefits

The offset mortgage market appears to be growing fast, largely because of appealing to a wider market audience than ever before.

But what is all the fuss about offset mortgages?

How could an offset mortgage benefit you?

An offset mortgage offsets your savings against the cost of your loan, thereby reducing the level of interest you have to pay and potentially cutting down the repayment period for the loan. Offset mortgages were once the preserve of the rich, but having the ability to offset savings against your mortgage loan could now benefit many homebuyers.

What are the positives of offsetting your mortgage?

The basic premise of an offset mortgage is to offset the borrowers’ savings against their mortgage loan. In theory, this then reduces the balance remaining of the mortgage, and also lowers the level of interest payments required. In the past, offset mortgages have been criticised for not being flexible, but this is all changing. Many offset deals now allow borrowers to be flexible with their mortgage repayments.

What types of deals are typical of offset mortgages?

Most offset mortgages are fixed at a lower rate for a fixed period, followed by a reversion to a tracker mortgage rate, usually base rate plus a small figure. These are often set for the lifetime of the loan, and allow borrowers to pay a competitive rate of interest without having to worry about remortgaging.

How are offset mortgages changing?

It is likely that in the future offset mortgages will become even more flexible, allowing borrowers to overpay and underpay on their mortgages, as well as take repayment holidays. Furthermore, the future could see offset mortgages become more complex. Flexibility options could include the ability to link up to three savings accounts to the offset mortgage, and also to include the savings account of willing relatives or friends. For instance, parents could choose to offset some of their savings against their children’s mortgage, reducing their child’s mortgage payments.

Why doesn’t everyone have an offset mortgage?

Despite the face that offset mortgages are becoming more attractive to a wider range of people, borrowers should be aware that they do not suit everyone. For instance, those people with small or zero savings may find other mortgage products more suitable.

How should I find out more about offset mortgages?

For more information about offset mortgage loans and to get an offset mortgage quote, please use our Mortgage Enquiry Form and one of our experts will contact you for further assistance. Alternatively, you can give us a call on .

Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.

Free mortgage quoteFree Mortgage Quote

Mortgages in Scotland Mortgages in Scotland

Equity releaseEquity Release

  • Unlock equity in your home.

Switching mortgagesSwitching Mortgages

Home reversion plansHome Reversion Plans

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover

Mortgage Newsletter