The way our mortgage offset facility works is simple.
A savings account (called an Offset Saver Account) is set up alongside your client's mortgage.
The money in the savings account is then offset against the mortgage. So, while your client won’t earn any interest on their savings, in effect they won't be charged any interest on the same amount of their mortgage – as shown by the diagram below.
This could potentially save your client thousands of pounds in interest, and they can benefit from this in one of two ways:
- Paying off the mortgage early (Reduced Term), or
- Reducing the monthly mortgage payment (Reduced Monthly Payment)