When borrowing money from the lender you must also run savings or deposit accounts with them. You are charged interest on the amount borrowed less the amount deposited.

Example if you have borrowed £200,000 and left £40,000 in the saving account which the lender holds you would be charged interest on £160,000.

You do not pay interest on your savings.

You pay less interest by placing more funds into the offset account.

Make overpayments when you want.

If you are up to date with your payments some lenders may let you stop or underpay payments for a maximum of 6 months.

You need to have a large sum of money in your savings account. £20,000 for every £100,000 borrowed.

You have a number of payments options available from a fixed rate period to tracker mortgages. The fixed rate period is lower in interest and normally between 6 months to 12 months long. The tracker mortgage is also only available for a certain time but moves with the base rates set by the bank of England .

The flexibility of depositing more into the savings account lowering the interest rates is a good thing to have especially if you are a higher rate tax payer.

Always consult a mortgage specialist when taking out an offset mortgage. Fill in our mortgage enquiry form and get a call back from one of our mortgage brokers who can advise you about taking out a mortgage and find a suitable mortgage for you.