<Mortgage comparison

Compare offset mortgages

Offset mortgage

Looking for an offset mortgage? Our award winning broker partner, Mojo, can help

Find an offset mortgage deal by comparing from over 70 lenders

If you're eligible, Mojo will show you a table of offset mortgage deals available to you
CardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence ProvidersCardFinderLowProminence Providers
Get an offset mortgage
Trustpilot
YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. The FCA does not regulate buy-to-let mortgages for commercial and investment properties.
Author
Atousa Cunnell
Updated by
James Andrews
Last updated
June 9th, 2025
On this page

How do offset mortgages work?

An offset mortgage uses your savings to reduce the interest you pay by linking your savings balance to your mortgage. This makes your savings work harder, especially if your mortgage rate is higher than savings rates.

You still repay both capital and interest monthly, but interest is charged only on your mortgage balance minus your savings.

How offset mortgages work:

  • You transfer your savings to an account with your mortgage lender that’s linked to your mortgage.

  • You retain full access to your savings and can add or withdraw funds anytime.

  • For every extra £1 saved, you pay interest on £1 less of your mortgage balance. Conversely, withdrawing savings increases the interest you pay.

Make sure to compare offset mortgages with potential earnings from high-interest savings accounts to find the best option.

Offset mortgage example:

If you owe £200,000 on your mortgage and have £20,000 in savings, you’ll pay interest only on £180,000 - as long as those savings remain in your offset account.

How to find the best offset mortgage rate with Mojo Mortgages

Your Mojo expert can offer advice on finding the right deal for you

Tell us your mortgage information

You'll be asked a variety of questions to get a better understanding of your situation to help find a mortgage deal

Compare with Mojo's deal table

If you're eligible, you'll be shown a table of mortgage deals based on the information you provided

Get your best mortgage deal with an expert

Mojo experts will review the mortgage deal you like, make sure it's your best option, and sort the rest out for free

Offset mortgage rates

Offset mortgage rates are typically slightly higher than those on standard repayment mortgages. But in many cases, the interest savings you make by offsetting your savings balance can more than make up for this difference. As with any mortgage, the offset mortgage rate you’re offered will depend on your credit history and how much you want to borrow.

To get the best offset mortgage deal for your needs, it’s important to weigh up whether you’d save more by keeping your money in a high-interest savings account or by choosing a different type of mortgage with a lower interest rate.

For example, if your savings account pays 0.5% interest on a £20,000 balance (giving you £100 a year), you should subtract this from the total you’d save through an offset mortgage to work out which option offers better value.

Are monthly repayments cheaper with an offset mortgage?

They can be. Most lenders give you two options:

  • You choose to pay interest only on the mortgage balance after subtracting your savings.

  • Or, you keep your monthly repayments the same but you're effectively overpaying your mortgage, shortening the mortgage term without increasing your monthly costs.

Can I still access my savings account during an offset mortgage?

Yes you can normally still access your savings while they're in an offset account. However, bear in mind that if you withdraw a chunk of savings then this will mean you won't benefit as much from a reduction in interest payments.

Individual lenders may also have specific rules on withdrawals from an offset savings account, such as the amount of notice you need to give them. Make sure to check the terms and conditions for your offset mortgage deal.

Get an offset mortgage

Is an offset mortgage a good idea?

Pros

You pay less interest on your mortgage debt overall, allowing you to either finish repaying your mortgage earlier or make smaller monthly payments
You can still access your savings if you need to
They can be tax efficient for higher rate taxpayers, as you pay no tax on savings in a linked savings account
Some offset mortgages let you link up your current account as well as your savings account or multiple savings accounts

Cons

Offset mortgage rates can be higher than standard repayment mortgages
They are most beneficial to those with a lot of savings, so if your savings are fairly small, this type of mortgage may not offer you the greatest benefits.
Some lenders may expect you to maintain a minimum balance, so you’ll need to factor this into your future financial plans
Fewer lenders offer offset mortgage deals, so you may have less choice
If the best offset mortgage rates are high, it may be better to use your savings to overpay a standard repayment mortgage instead
“Offset mortgages can be a good way to make your savings work harder for you, either by reducing your mortgage term or your monthly repayments. But make sure to check that you won't make more in interest with another savings account than you'll save with an offset mortgage.”
Author image
Atousa Cunnell
Content Producer - Mortgages

Offset mortgages FAQs

Can I have more than one account for an offset mortgage?

Yes, many lenders let you link multiple savings accounts to your offset mortgage and some even offer the option to link family members savings accounts.

Can you offset 100% of your mortgage?

There’s not usually a limit to what you can offset, most lenders let you pay as much as you like into the savings account. If your savings balance is 100% of your mortgage, you won't be charged any interest.

Can I repay my mortgage early with an offset mortgage?

Yes you can repay your mortgage early with an offset mortgage.

If you choose to keep your monthly repayments the same while offsetting your savings, you'll effectively be overpaying your mortgage each month. This helps reduce your mortgage balance faster, allowing you to pay off your mortgage early and shorten the overall term.

Should I put down a bigger deposit instead of getting an offset mortgage?

It depends on your situation, but in many cases, putting down a bigger deposit instead of choosing an offset mortgage could save you more money.

A larger deposit lowers your loan-to-value (LTV) ratio, which usually gives you access to better mortgage rates and deals. This can sometimes lead to greater savings than using an offset account.

However, the right choice depends on your personal circumstances and financial goals. It’s a good idea to speak to a mortgage broker who can compare the full market and help you decide whether a bigger deposit or an offset mortgage will work best for you.

About the author

Author imageAtousa Cunnell
Atousa Cunnell
Atousa is a Content Producer for money.co.uk, responsible for writing and editing a wide range of mortgage content that are helpful to the reader.

money.co.uk is not a mortgage intermediary and makes introductions to Mojo Mortgages to provide mortgage solutions.

money.co.uk and Mojo Mortgages are part of the same group of companies. money.co.uk is a trading name of Dot Zinc Limited, registered in England (4093922) and authorised and regulated by the Financial Conduct Authority (415689). Our registered address is: The Cooperage, 5 Copper Row, London, England, SE1 2LH.

Mojo is a trading style of Life's Great Limited which is registered in England and Wales (06246376). We are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215). Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.