Offset Mortgage Calculator
An offset mortgage links your savings to your mortgage so you only pay interest on the mortgage balance minus your savings. On a £200,000 mortgage with £30,000 savings, you pay interest on just £170,000.
Offset Mortgage vs Savings
Compare keeping savings in a savings account versus using them to offset your mortgage.
Enter your mortgage balance and interest rate, then your savings balance and the savings rate you currently earn. An offset mortgage links your savings to your mortgage, reducing the balance on which interest is charged — if you have a £200,000 mortgage and £40,000 savings, you only pay interest on £160,000. The calculator shows the interest saving against the interest you forgo by not earning savings interest separately. Offset mortgages have historically carried a slight rate premium over equivalent non-offset products. Use the calculator to determine whether the offset benefit exceeds the rate difference at your specific savings and mortgage balance levels.