Offset mortgages pair a savings account with your mortgage: your savings don’t earn interest; instead, they reduce the mortgage balance used to calculate interest.
Example
Mortgage £200k, savings £20k. Interest charged on £180k—cutting cost and potentially term, while you keep access to savings.
Key features
Flexible access to savings, reduced interest, potential term reduction, and tax efficiency (no taxable savings interest while offsetting).
Who benefits
Savers, business owners with tax reserves, high earners, and families using linked savings to support children’s mortgages.
Advantages
Lower interest paid, flexibility, option to reduce payments or term, tax benefits for higher‑rate taxpayers.
Considerations
Offset deals can price slightly higher; savings earn no interest; discipline needed (withdrawals reduce benefit); fewer lenders offer offsets.
Alternatives
Standard repayment with overpayments, flexible mortgages, or simply overpaying regularly.
Why Everest Mortgages
We know the few lenders active in offset, model offset vs overpayment, and structure accounts for efficiency.
Final thoughts
If you hold meaningful cash balances, offset could be a powerful tool.
Want your savings working harder? Explore offset options with Everest‑Mortgages.co.uk.
