What is an Offset Mortgage?

Mortgage Matters: What is an offset mortgage and could it work for you? It could be an interesting option for borrowers with some extra cash savings

Faith Glasgow 15 March, 2021 | 9:42AM
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Mortgages come in many shapes, but one interesting option for borrowers who also have some cash savings is an offset mortgage.

To make effective use of an offset mortgage you need to have a savings, a current account and/or an Isa account with the mortgage lender. There are only a limited number of lenders who offer offset deals – including Barclays, First Direct and the Coventry and Yorkshire building societies – so that could mean moving your savings to your chosen provider, or, if you’re lucky, being able to set up an offset mortgage with the bank where you already hold your cash.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Faith Glasgow  Faith Glasgow is a freelance journalist specialising in pensions and investment trusts

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