Offsetting

You can use - or offset - your savings against your mortgage balance and significantly reduce the amount you pay in interest. While we don't pay you interest on this money, we don't charge any interest on the equivalent amount of money on your outstanding mortgage balance either so the interest owing on your mortgage is reduced.

For example, if you have a mortgage balance of £160,000 and an Offset Reserve of £20,000 you only pay interest on £140,000.

This could save you thousands of pounds in interest or cut years off your mortgage term so you could be mortgage-free sooner than you ever thought.

And…the benefit you receive from Offsetting is tax free.

The facts:

• You may have to pay a one-off fee of £99 to activate Offsetting on your mortgage
• Remember, tax relief may change in future
• Offsetting is available on all variable rate products and certain fixed rate products
• Moving money out of your Offset Reserve will increase the interest payable on your mortgage balance