UK Mortgage Glossary
Offset Mortgage
Savings account linked to mortgage; balance reduces interest charged.
Full definition
A mortgage structure where your savings account is linked to your mortgage. The savings balance is 'offset' against the mortgage, so you pay interest only on the net difference. Withdrawals from savings are allowed but reduce the interest benefit. Suited to high-income borrowers with significant savings.
How this affects you
Whether offset mortgage is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.
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