An offset mortgage lets you use your savings to help reduce the amount of interest you pay on your mortgage. You can still access the money in your savings account, but you won't earn interest on it; you save interest on your mortgage instead.

If you have money in a savings account, it could help you reduce your monthly payments, or pay your mortgage off quicker.

Mortgages have higher interest rates than most savings accounts. Paying less interest on your mortgage will usually be more cost effective than the return you could get from a savings account. Use our offset mortgage comparison to find a deal that could save you money.

How do they work?

You have to hold at least two accounts with your lender:

  • Your mortgage account

  • One or more savings accounts

The savings account will pay no interest, but the amount you have in it saves you money on your mortgage balance.

You will only be charged interest on the balance of your mortgage minus the amount in your savings accounts.

For example, if you had a mortgage for 170,000 and 30,000 in your linked savings account, you would only be charged interest on 140,000.

You can usually withdraw from the savings account whenever you need to, but you will lose the interest reduction on any money you take out.

Choose a benefit

Less interest on your mortgage means you can pay less overall while you clear its balance. Offset mortgages usually let you choose either:

  • A shorter mortgage term

  • Lower monthly repayments

Are offset mortgages always best?

A normal mortgage could work out cheaper if you can get:

  • A mortgage with a low interest rate

  • A savings account with a high interest rate

Compare this to how much an offset mortgage could save you. You can work this out using an offset mortgage calculator.

Offset mortgages FAQs


Will I still be able to access the money in my offset account?


Yes, most let you withdraw from the savings account at any time, but you will no longer get reduced interest once the money is taken out.


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


Yes, many lenders let you link multiple savings accounts to your offset mortgage.


Is there a limit to the amount I can offset?


Most lenders let you pay as much as you like into the savings account. If your savings and mortgage balances are the same, no interest will be charged.


What if my savings are higher than my mortgage balance?


You would pay no mortgage interest but get no benefit from the extra in your savings. You could save this elsewhere or pay off some of your mortgage.


Can I get a buy to let offset mortgage?


Most lenders only offer offset mortgages for your own home, but some occasionally offer them for buy to let purchases.


Can I get an offset remortgage?


Yes, it is possible to switch from a normal mortgage to a new offset deal.

About our mortgage comparison


Who do we include in this comparison?


We include mortgages from every lender in the UK. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.