Jason Bailey

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Products Updated October 12, 2021

 

Compare Offset Mortgages Deals

Using our mortgage comparison tools we’ve quickly compared and displayed all the offset mortgage products currently available. See how these products compare with each lender and use the search and filter tools to alter the results to meet your needs. We have access to all the mortgages from the whole of the UK market.

 

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Start Your Offset Mortgage Application Today With Lending Expert!

An offset mortgage is a type of home loan which blends a traditional mortgage with one or more accounts from the same financial institution. The balance in the deposit can be used to offset the mortgage balance. 

This structure means that you are able to repay more of your loan monthly and therefore pay back your overall mortgage sooner. Another benefit of this is that it will lower interest payments throughout the course of the loan term.

Lending Expert is an offset mortgage broker and can compare over 1,000 mortgage deals across the UK. Whilst high street banks will typically offer joint mortgages too, we can help find the best option for you with rates from 1.39% per month, whether you are looking for interest only, fixed, variable, tracker or have a bad credit history.

Start by clicking on ‘Check my Eligibility’ below and enter some basic details about you and your property – and Lending Expert will be able to help you find the best joint mortgage according to your requirements. 

 

Key Features

  • Rates from 1.39% per month
  • Borrow up to £2 million
  • Loan Term – 1 to 25 years or upon request
  • Minimum 25% deposit
  • Interest only, fixed, tracker mortgages available
  • Free tool to compare offset mortgages

 

What Is an Offset Mortgage?

An offset mortgage is one in which you have a savings account and your mortgage with the same financial institution and your cash savings are used to ‘offset’ the amount of mortgage interest. This means that you will not pay any interest on the mortgage debt which is the equivalent amount of the savings in the existing account.

Offset mortgages use the funds in a borrower’s deposit accounts to offset the mortgage balance meaning that they benefit from lower monthly payments.

 

What Areas of the UK Does Lending Expert Cover as an Offset Mortgage Broker?

We proudly offer offset mortgages across the entire UK, Scotland and Wales including Birmingham, Brighton, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham, Newcastle, Sheffield and more.

 

How Much Can I Borrow From an Offset Mortgage?

Speak to an expert today in order to find out how much you can borrow from an offset mortgage.

For offset mortgages, your repayment plan will need to allow for not just your mortgage payments, but also enough to cover any of your offset payments.

 

Can I Get an Offset Mortgage?

  • Aged 25 to 85 years’ old
  • Minimum income of £25,000 per year
  • Minimum deposit 25% of overall property value
  • Good credit status 
  • Strong financial record (limited defaults, arrears)
  • The property has potential value and can be rented out

 

The typical deposit required for an offset mortgage is 25% of the property value, with some lenders requiring as much as 40% to 45%. Larger deposits will usually result in paying lower rates overall, since you have paid off and own more of the property. Putting down a higher deposit may also be a requirement for those individuals with limited financial records or weaker credit ratings.

For those who are relying on their savings interest in order to boost their income, offset mortgages may not be the best option.

 

What Other Factors May Impact Eligibility for an Offset Mortgage?

Many different factors could impact your eligibility to secure an offset mortgage. 

These include, but are not limited to, the following:

  • Credit history
  • Age
  • Deposit / Loan to Value ratio (LTV)
  • Property type

 

 

Is an Offset Mortgage the Best Option for You?

Offset mortgages can be an attractive option for those looking to pay back a mortgage loan sooner and cheaper. Borrowers are able to make small payments to repay the principal instead of the interest.

These mortgages can be a desirable option for borrowers who are also diligent savers. The associated savings account will not earn any interest across the loan term. However, the majority of savings accounts are typically low-earning accounts that pay between 1% to 3%, or less, annually.

Offset mortgages typically have a higher than usual interest rate. This means that if you spend less than your monthly income, you are overpaying your mortgage and helping to pay it off quickly.

Any savings are a net benefit to the borrower and the foregone interest on the savings account will become a non-taxable payment toward the mortgage.

However, for this reason it relies on a sufficiently high monthly income to cover the mortgage repayment as well as your normal monthly costs.

If you can manage your monthly payments efficiently, the offset mortgage is a great option. The first step is to make sure that your finances are well organised and that you have ensured that this is an affordable option for you.

For those having doubts about whether this is the right type of mortgage for you, make an enquiry in order to speak to our team of expert advisors.

 

Offset Mortgages & Income

More than with other types of mortgages, monthly income is a very important factor when deciding to offset your mortgage.

As previously stated, a high monthly income may be favourable for this type of mortgage. Your monthly income will need to be enough to comfortably cover any outgoings as well as your offset monthly payments.

Thus, offset mortgages are often preferred by high-end earners or those looking to take out a joint mortgage.

 

How Could an Offset Mortgage Save Me Money?

Offset mortgages can lower monthly mortgage payments and mean that your loan term is shorter so you are paying back money over a reduced period of time.

For example, if your mortgage balance is £100,000, and you have £20,000 in your offset savings account, you will only be charged interest on the remaining £80,000. Subsequently, that saving will help to lower your monthly payments or shorten your loan term.

Speak to one of our team today, or use our free tool, to see how much you could save by offsetting your mortgage, how much you could borrow and what it might cost.

 

Offset Mortgage Providers

Many lenders on the market offer competitive rates for offset mortgages. 

At Lending Expert, we compare the offset mortgage market in order to find the best provider to suit your needs. 

Rather than approaching the lenders directly and dealing with their in-house advisors, working with a mortgage broker will offer impartial advice to get you the best deal on the market.

 

How Do I Compare Offset Mortgage Rates?

Working with a mortgage broker such as Lending Expert will help you find the best mortgage to suit your circumstances without impacting your credit rating.

Contact us today to speak to an expert and start comparing offset mortgages to find the best option for you.

 

What To Consider Before Getting an Offset Mortgage

Prospective buyers should always consider the following factors before deciding to take out an offset mortgage: 

  • Monthly income
  • Outgoing payments
  • Any large future outgoing payments
  • Interest rate
  • Stamp duty

 

What Happens if I Do Not Keep Up With Repayments?

Your offset mortgage is usually secured against the property meaning that any late repayments will lead to a damaged credit score, late penalties and maybe even risk of property repossession from the bank or lender. For that reason, it is imperative to assess the affordability of an offset mortgage before choosing this option.

 

Why Use Lending Expert As Your Offset Mortgage Broker?

Working with a number of high street banks and specialist mortgage lenders, Lending Expert has access to over 1,000 mortgage deals available and is in the perfect position to help you get approved and get the best rates.

Our eligibility checker is completely free to use and can provide an indicative quote, with no obligation. 

Founded in 2013, we have years of experience working in the secured loan and mortgage market and have helped thousands of customers to date. Our values have always been to find the right product for the right individual at the competitive rate – and we are pleased to offer our services for you today!