For example, if you had a £100,000 mortgage, savings of £9,000 and a current account balance of £1,000, you can offset £10,000 and only pay interest on the £90,000. You’ll only pay interest on the difference – which in this case is £80k. Instead of a standard savings account, you could place your savings in an offset account linked to your mortgage. Our Offset Mortgage takes into account other money you have with us when working out your interest payments. Enter your details below to see how much an Offset Mortgage could save you in … If you keep the same monthly repayments based on the full amount of your mortgage, the balance will reduce faster - in other words, you could pay your mortgage off earlier. Changes to our wording. If you're an existing offset mortgage or current account customer who would like more information on offsetting please select the "All about offsetting" link opposite, or call us on 0345 609 4343. We're changing the words we use to describe some of our fees and services for UK personal current accounts. An offset mortgage is where you have savings and a mortgage with the same lender and your cash savings are used to reduce – or 'offset' – the amount of mortgage interest you're charged. Potential Interest Saved Calculated as to the sum of A = B less C, where: A = Potential Interest Saved B = Interest debited on … For example, if you had an offset mortgage of £170,000 and £30,000 in your linked savings account, you would only be charged interest on £140,000. So every pound that’s in an eligible savings or current account with us, is one less pound you’ll pay mortgage interest on. Say you have a £100,000 mortgage, savings of £20,000 and a current account … You can usually withdraw money from the savings account whenever you need to, but you will lose the interest reduction on any cash you take out. Use of the Offset Account The calculator compares a loan operating without an Offset Account against a loan linked with an Offset Account. With an Offset Mortgage we’ll take your savings into account when working out your interest. Offset mortgage vs savings. Say you have a mortgage of £100k and £20k in savings.
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