How do Offset mortgages work?

When you take out an Offset mortgage, you’ll be given the option to open up to 6 linked Yorkshire Bank offset accounts which can be any mixture of eligible savings and current accounts. However, you would no longer get interest on these savings and current accounts. The money you deposit into these accounts will then be offset against the amount you owe on your mortgage. As interest is only charged on the difference between the credit balances in your accounts and your debit mortgage balance, the more money you have in these linked accounts, the more interest you will save.

What makes them so great?

• If you have credit balances, an increased proportion of your mortgage payment will go towards repaying the capital
• You can opt to increase your repayments, which helps you reduce the term of the mortgage and pay less interest
• Enjoy the flexibility of payment holidays between 3 and 6 months, or access extra funds if you’ve made sufficient overpayments or lump-sum repayments. Please note, interest will continue to accrue during a payment holiday
• Payment holidays and access to borrow back overpaid funds are not available during a concessionary period.

Who are they best for?

Anyone with a positive balance in their savings or current account could save with this mortgage. Because your interest is calculated daily, you can make your money work harder every day it’s in your account.

Applicants must be aged 18 or over. All loans are subject to status. Security will be required

The value of any tax benefits to you depends on your individual circumstances, the Law and Her Majesty’s Revenue and Customs (HMRC) practice which are subject to change.

Our offset mortgages

Please review our table of offset mortgages products. If you need more information, our advisors are on hand to help with your mortgage queries.

Find out more about our Offset mortgages