Compare offset mortgages

Offset mortgages allow you to use your savings to reduce the amount of interest you pay on your outstanding mortgage balance. Compare every offset mortgage and find the best offset mortgage rates to see if they could suit your needs.

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156 results found, sorted by affiliated products by lowest initial rate. How we order our comparisons. Commission earned affects the table's sort order.
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First Direct 2 year fixed offset
0808 296 6568
Maximum LTV
60%
Initial rate
2.69% fixed for 2 years
Subsequent rate (SVR)
3.54% variable
Overall cost for comparison
3.5% APRC
Available via telephone only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£490 paid upfront (non-refundable)
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 3.00% of the original loan, in the first year

- 2.00% of the original loan, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
First Direct 2 year fixed offset
0808 296 6568
Maximum LTV
75%
Initial rate
2.89% fixed for 2 years
Subsequent rate (SVR)
3.54% variable
Overall cost for comparison
3.5% APRC
Available via telephone only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 3.00% of the original loan, in the first year

- 2.00% of the original loan, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
First Direct 2 year fixed offset
0808 296 6568
Maximum LTV
60%
Initial rate
2.89% fixed for 2 years
Subsequent rate (SVR)
3.54% variable
Overall cost for comparison
3.5% APRC
Available via telephone only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 3.00% of the original loan, in the first year

- 2.00% of the original loan, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
First Direct term BBR tracker offset
0808 296 6568
Maximum LTV
75%
Initial rate
3.29% base rate tracker for mortgage term
Subsequent rate (SVR)
3.29% variable
Overall cost for comparison
3.4% APRC
Available via telephone only.
More information
Application feeNo fee
Arrangement fee£490 paid upfront (non-refundable)
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
First Direct term BBR tracker offset
0808 296 6568
Maximum LTV
60%
Initial rate
3.29% base rate tracker for mortgage term
Subsequent rate (SVR)
3.29% variable
Overall cost for comparison
3.4% APRC
Available via telephone only.
More information
Application feeNo fee
Arrangement fee£490 paid upfront (non-refundable)
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
First Direct term BBR tracker offset
0808 296 6568
Maximum LTV
60%
Initial rate
3.49% base rate tracker for mortgage term
Subsequent rate (SVR)
3.49% variable
Overall cost for comparison
3.6% APRC
Available via telephone only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
First Direct term BBR tracker offset
0808 296 6568
Maximum LTV
75%
Initial rate
3.49% base rate tracker for mortgage term
Subsequent rate (SVR)
3.49% variable
Overall cost for comparison
3.6% APRC
Available via telephone only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Scottish Widows Bank 2 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.22% fixed until 31 Jan 2024
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.5% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£749 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Widows Bank 2 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.22% fixed until 31 Jan 2024
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.6% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£749 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Coventry Building Society 2 year fixed offset
Maximum LTV
50%
Initial rate
1.29% fixed until 31 Dec 2023
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.9% APRC
The initial rate will be followed by a rate of 3.99% until 31 Dec 2026 (0.5% discount on SVR).
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Dec 2022

- then 1.00% of amount paid, until 31 Dec 2023

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Scottish Widows Bank 5 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.29% fixed until 31 Jan 2027
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.2% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£749 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, in the first year

- 4.00% of amount paid, in the second year

- 3.00% of amount paid, in the third year

- 2.00% of amount paid, in the fourth year

- 1.00% of amount paid, in the fifth year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Widows Bank 5 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.29% fixed until 31 Jan 2027
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.1% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£749 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, in the first year

- 4.00% of amount paid, in the second year

- 3.00% of amount paid, in the third year

- 2.00% of amount paid, in the fourth year

- 1.00% of amount paid, in the fifth year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Yorkshire Building Society 2 year fixed offset for existing borrowers
Maximum LTV
65%
Initial rate
1.35% fixed until 29 Feb 2024
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.6% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion fee£995 with an option to add to the loan
Product feeNo fee
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 2.50% of the original loan, before 28 Feb 2023

- then 1.50% of the original loan, until 29 Feb 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Coventry Building Society 2 year fixed offset
Maximum LTV
50%
Initial rate
1.39% fixed until 31 Dec 2023
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.9% APRC
The initial rate will be followed by a rate of 3.99% until 31 Dec 2026 (0.5% discount on SVR).
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Dec 2022

- then 1.00% of amount paid, until 31 Dec 2023

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Coventry Building Society 2 year fixed offset
Maximum LTV
65%
Initial rate
1.39% fixed until 31 Dec 2023
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
The initial rate will be followed by a rate of 3.99% until 31 Dec 2026 (0.5% discount on SVR).
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Dec 2022

- then 1.00% of amount paid, until 31 Dec 2023

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Coventry Building Society 5 year fixed offset
Maximum LTV
50%
Initial rate
1.39% fixed until 31 Dec 2026
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.4% APRC
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Dec 2022

- then 3.00% of amount paid, until 31 Dec 2024

- then 1.00% of amount paid, until 31 Dec 2026

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Scottish Widows Bank 2 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.45% fixed until 31 Jan 2024
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.5% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Widows Bank 2 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.45% fixed until 31 Jan 2024
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.6% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Widows Bank 5 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.45% fixed until 31 Jan 2027
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.2% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, in the first year

- 4.00% of amount paid, in the second year

- 3.00% of amount paid, in the third year

- 2.00% of amount paid, in the fourth year

- 1.00% of amount paid, in the fifth year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Widows Bank 5 year fixed for existing borrowers
Maximum LTV
60%
Initial rate
1.45% fixed until 31 Jan 2027
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.1% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, in the first year

- 4.00% of amount paid, in the second year

- 3.00% of amount paid, in the third year

- 2.00% of amount paid, in the fourth year

- 1.00% of amount paid, in the fifth year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Widows Bank 2 year fixed for existing borrowers
Maximum LTV
75%
Initial rate
1.46% fixed until 31 Jan 2024
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.5% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£749 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Widows Bank 2 year fixed for existing borrowers
Maximum LTV
75%
Initial rate
1.46% fixed until 31 Jan 2024
Subsequent rate (SVR)
3.59% variable
Overall cost for comparison
3.6% APRC
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking fee£749 with an option to add to the loan
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Northern Ireland
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Coventry Building Society 2 year fixed offset
Maximum LTV
75%
Initial rate
1.49% fixed until 31 Dec 2023
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
4.0% APRC
The initial rate will be followed by a rate of 3.99% until 31 Dec 2026 (0.5% discount on SVR).
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Dec 2022

- then 1.00% of amount paid, until 31 Dec 2023

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Coventry Building Society 2 year fixed offset
Maximum LTV
65%
Initial rate
1.49% fixed until 31 Dec 2023
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.9% APRC
The initial rate will be followed by a rate of 3.99% until 31 Dec 2026 (0.5% discount on SVR).
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Dec 2022

- then 1.00% of amount paid, until 31 Dec 2023

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Coventry Building Society 5 year fixed offset
Maximum LTV
65%
Initial rate
1.49% fixed until 31 Dec 2026
Subsequent rate (SVR)
4.49% variable
Overall cost for comparison
3.4% APRC
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Dec 2022

- then 3.00% of amount paid, until 31 Dec 2024

- then 1.00% of amount paid, until 31 Dec 2026

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at term end75 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Overall representative example

Based on borrowing£170,000 over 25 yearsThe overall cost of comparison3.65% APRC representative
Initial rate2.07% fixed for 2 years (24 instalments of £709.38pm)Subsequent rate (SVR)3.88% variable for the remaining 23 years (276 instalments of £875.92pm)
Lender fee£549Total amount payable£259,327.90

What is an offset mortgage?

An offset mortgage lets you use your savings to reduce the amount of interest you pay on your mortgage. You will still be able to access the money in your savings account, but you won't earn any interest on it.

Instead, your mortgage is offset or 'reduced' by your savings, meaning you pay less interest on your mortgage balance. This can help you to pay off the loan much sooner.

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

Because mortgages charge 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 offset mortgages work?

With an offset mortgage, both your mortgage and your savings account will need to be with the same bank or building society so that they can be linked. The value of your savings will be deducted from your mortgage balance and you will only be charged interest on the remaining amount.

The savings account will earn no interest, but the amount you have in it saves you money on your offset 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 an offset mortgage of £170,000 and £30,000 in your linked savings account, you would only be charged interest on £140,000.

You can usually withdraw money from the savings account whenever you need to, but you will lose the interest reduction on any cash you take out. This means your repayments may go up.

It is also possible to take out an interest only offset mortgage. However, in this case you will be responsible for paying off the capital at the end of the mortgage term.

Offset mortgages explained

Offset mortgage options

Paying less interest on your mortgage means you will pay less interest overall while you clear the balance. Offset mortgages usually let you choose between the following benefits:

  • A shorter mortgage term, but the same monthly repayment amount - you'll pay off your mortgage more quickly and pay less interest as a result

  • Lower monthly repayments - saving you money in the short term

Here is how much an offset mortgage could save you

Offset mortgage rates

Although offset mortgages work in a slightly different way to standard mortgages, you can still choose from both fixed rate and variable rate deals.

If you choose a fixed rate offset mortgage, the amount of interest you pay will typically be fixed for two, three or five years, making it a good option for those on a budget.

Alternatively, you could opt for a variable rate - tracker - offset mortgage. This tracks the Bank of England base rate and your monthly repayments can go up or down in line with the base rate's movements.

Keep in mind that offset mortgage rates are typically a little higher than standard mortgage rates. However, just like with standard mortgages, the mortgage rate you are offered will depend on your credit history and how much you want to borrow.

How to get the best offset mortgage

To find the best offset mortgage, it's important to shop around and compare offset mortgage rates carefully. You can do this with ease by using our comparison table above.

Make sure you factor in both the interest rate and the fee to find the best deal, and consider whether you would prefer a fixed rate offset mortgage or a variable rate deal.

What are the pros and cons of offset mortgages?

The benefits of offset mortgages include:

  • You pay less interest on your mortgage debt, meaning you will pay it off earlier, or you can choose to 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

  • Most lenders let you make overpayments on an offset mortgage, allowing you to pay off your mortgage more quickly and cheaply

The cons include:

  • Offset mortgage rates can be higher than standard repayment mortgages

  • You need quite a lot in savings to really make a difference

  • You won't earn interest on your money, which can be disappointing when interest rates are high

  • Fewer lenders offer offset mortgage deals, so you may have little choice

  • If the best offset mortgage rates are high, it may be better to use your savings to overpay a standard repayment mortgage instead.

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

Offset mortgages FAQs

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.

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

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.

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.

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

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

About our mortgage 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.

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.

Last updated: 11 October, 2021

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Comparing mortgages could help you save money. Our award-winning loan comparison service makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators to help you make life's most important decisions and take control of your money.

Proud to be award winning

We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.