Looking for the best offset mortgage deal?

If you've got money sitting in a saving account, an offset mortgage could be a good option to allow you to use your savings and offset them against the amount you owe on your mortgage.

As an example, if you have a £200,000 mortgage and £40,000 in savings offset against it, you would only pay interest on £160,000. But your monthly mortgage payments will, most likely, be based on the full £200,000 loan. That means that you are effectively over paying you mortgage each month. Offset mortgages allow you to pay less interest on your mortgage, while allowing you to potentially pay your mortgage off quicker.

Offset mortgages allow you to have easy access to your savings while reducing how much interest you pay on your mortgage loan. Some lenders will allow you to reduce your monthly payments so the amount you pay is based on the value of the outstanding mortgage minus the money offset in savings. In this circumstance it could help bring down your repayment but won't allow you to pay off your mortgage faster.

Speak to an adviser

Before you decide to opt for one of the mortgage options below, it's important to speak with an independent mortgage expert. Our advisers at John Charcol will be able to assist you in comparing products from across the mortgage market to help you decide which mortgage is best for you. If you could be better off taking out another offset mortgage or if a different mortgage product would be more beneficial to you and your personal situation our experts will advise you.

Current best offset mortgage deals:

Initial Rate
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Total amount of credit
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Monthly repayments
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Scheme fees
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Total amount payable
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Overall rate
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Max Loan to value 75%: Offset 2 year 1.44% Fixed. Remortgage only.
Initial Rate
1.44% Fixed until 31/05/2019 then 3.74% Variable for term
Total amount of credit
£337,500
Monthly repayments
£1,340
Scheme fees
£1,524
Total amount payable
£501,018
Overall rate
3.40% APRC

Fees and charges:

Booking Fee£0
Arrangement fee£1,499
Valuation fee£0
Other fees£25
Cashback£0

Flexibility:

Overpayments allowed?10% per annum
Early Repayment Charges2.50% until 12 months payments have been made then 1.00% for the remainder of the product period

Other info:

Exit fee£195
Basic legalsFree
Special DealFree valuation and Free legal service or contribution of £300 towards legal fees. The mortgage will be linked to an Offset Savers Account.
Call now for more information: 0344 346 3672
Representative example A mortgage of £337,500 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 1.44% then on a variable rate of 3.74% for the remaining 23 years would require 27 payments of £1,339.65 and 273 payments of £1,696.44. The total amount payable would be £502,452 made up of the loan amount plus interest (£163,233) and fees (£1,719 which includes exit fees of £195). The overall cost for comparison is 3.40% APRC representative
Max Loan to value 50%: Offset Flexx variable rate for term
Initial Rate
1.45% Offset Flexx variable rate for term which is managed by Coventry Building Society
Total amount of credit
£225,000
Monthly repayments
£894
Scheme fees
£1,007
Total amount payable
£269,377
Overall rate
1.50% APRC

Fees and charges:

Booking Fee£0
Arrangement fee£999
Valuation fee£0
Other fees£8
Cashback£0

Flexibility:

Overpayments allowed?Unlimited
Early Repayment ChargesNo early repayment charge but a fee of £125 is payable when the mortgage is redeemed

Other info:

Exit fee£125
Basic legalsPayable
Special DealFree Valuation (Maximum £670). Free Legal Service for Remortgages only.
Call now for more information: 0344 346 3672
Representative example A mortgage of £225,000 payable over 25 years on a repayment basis, on a flexx variable rate of 1.45% for 25 years would require 300 payments of £894.15. The total amount payable would be £269,377 made up of the loan amount plus interest (£43,245) and fees (£1,132 which includes exit fees of £125). The overall cost for comparison is 1.50% APRC representative
Max Loan to value 80%: Offset 2 Year 1.64% Fixed
Initial Rate
1.64% Fixed until 31/07/2019 then 5.34% Variable for term
Total amount of credit
£360,000
Monthly repayments
£1,464
Scheme fees
£995
Total amount payable
£615,836
Overall rate
4.70% APRC

Fees and charges:

Booking Fee£0
Arrangement fee£995
Valuation fee£0
Other fees£0
Cashback£0

Flexibility:

Overpayments allowed?Unlimited
Early Repayment Charges£90, plus (2% until 31/07/2018, 1% until 31/07/2019)

Other info:

Exit fee£90
Basic legalsPayable
Special DealFree Valuation (up to £695).
Call now for more information: 0344 346 3672
Representative example A mortgage of £360,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 1.64% and then on a variable rate of 5.34% for the remaining 23 years would require 28 payments of £1,463.57 and 272 payments of £2,109.02. The total amount payable would be £615,836 made up of the loan amount plus interest (£254,631) and fees (£1,205 which includes exit fees of £90). The overall cost for comparison is 4.70% APRC representative.

Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.