Offset Flexible Mortgage

Helping you pay off your mortgage earlier
Royal Bank mortgages are available for 18s.

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Opening hours: 
Mon-Fri 8am-8pm, Sat 9am-4pm, Sun 10am-2pm.
Excluding public holidays.
Calls may be recorded.

Customers with hearing and speech impairments can contact us by using

Minicom number 0800 056 6587

Your home may be repossessed if you do
not keep up repayments on your mortgage

Pay off your mortgage faster without increasing your monthly payment

Offset flexible mortgage at a glance

 Link your savings and current account balances to your mortgage


 Over 18s only



Interest rate


Product fee

4.00% variable


Purpose: Purchase or remortgage
Minimum deposit: 20% for capital and interest repayment option

 You could save thousands in mortgage interest: the interest you save reduces your mortgage balance


 You’ll always have access to your savings



Offset flexible mortgages explained

View transcript

Representative Example

A mortgage of £118,507 payable on our variable rate of 4.00% for a mortgage term of 15 years would require 180 monthly payments of £876.81.  The total amount  payable would be £158,496.29 made up of the loan amount £118,507 plus interest of £39,212.29, a product fee of £499, a valuation fee of £173, a valuation administration fee of £75 and a CHAPS fee of £30. 

The overall cost for comparison is 4.2% APRC representative. Balances held in linked accounts will reduce the amount of interest payable.


Helpful tools

Offset Flexible Mortgage Calculator

Find out what offsetting could mean for you and see how much less you could be paying each month if you set your savings against your mortgage.

Pay off your mortgage faster without increasing your monthly payment

How an Offset mortgage can help you

With an Offset mortgage, you can link your savings and current account balances to your mortgage and only pay interest on the difference between those accounts and your mortgage balance.

For example, if you had a £100,000 mortgage, savings of £9,000 and a current account balance of £1,000 - you would only pay interest on the £90,000.

Because you continue to make the same monthly repayments based on the full amount of your mortgage the balance reduces faster - in other words, you pay your mortgage off earlier.

All your accounts are still kept separate (you can withdraw from your savings or current account at any time), so it's easy to manage your money online, at your branch or over the phone.

Compare our Offset flexible mortgage with a Standard Mortgage

Making the most of your savings

Whilst offsetting, you don't earn any actual interest on the accounts you link to your mortgage. Instead your savings are used to reduce (or "offset") your mortgage balance. What this means is that the effective rate earned on your savings is equal to the mortgage rate - currently 4%.

In addition, because you're not technically earning interest (you're avoiding paying the mortgage interest instead) you don't have to pay any additional tax on your savings income which could be beneficial if you have already used your personal savings allowance.

Frequently asked questions

What people are asking us

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Protecting your money

We are a member of the Financial Services Compensation Scheme (FSCS). The Scheme can pay compensation to customers if they are eligible and the Bank is unable to pay claims against it. Compensation limits for Mortgage advice and arranging (for business conducted on or after 31 October 2004) - maximum £50,000 i.e. 100% of first £50,000 per person. Further information is available here (650K PDF) or visit

Offset Flexible Mortgage

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