The Offset Saver Account facility can be used on our mortgages if the eligibility criteria are met.
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Eligibility
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- The minimum balance of an Offset Saver Account is £100
- The maximum balance of an Offset Saver Account is £1 million
- For at least 1 month after the mortgage completes, the minimum net balance of the mortgage account after offsetting any savings must be £50,000
- Mortgage Reserve Account balances are not included in offset arrangements
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Product choice
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- The offset facility is available on all 2 year fixed rates, current 3 year fixed rates and all variable rates
- If your client’s mortgage is made up of more than 1 product and/or payment type, please advise which part they would like to offset against
- If part repayment and part interest only is chosen, clients can only offset against 1 portion
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How interest is calculated
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- Interest is calculated daily on the mortgage account balance less the offset saver account balance, and applied monthly to the mortgage account
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Offset Saver Account
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- The Offset Saver Account must be opened in the same name(s) as the mortgage account
- Transfers to and from the Offset Saver Account will be made by electronic funds transfer to/from a designated personal bank or building society account
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Offset benefit
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- With reduced term, monthly mortgage payments remain at the same level until an interest rate change, meaning the term could be decreased
- With reduced monthly payment, monthly mortgage payments are reduced and can fluctuate each month
- No credit interest will be paid to Offset Saver Accounts if the balance exceeds the mortgage debt
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Mortgage term
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- The original term of the mortgage is unchanged
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