Offset Flexible Mortgage | Royal Bank of Scotland

Offset Flexible Mortgage

Helping you pay your mortgage off earlier

Royal Bank mortgages are available for over 18s

Offset Flexible Mortgage calculator
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 a 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 £157,719.29 made up of the loan amount £118,507 plus interest of £39,212.29.  A product fee of £499, a valuation fee of £248 and a CHAPS fee of £30 are also payable.  

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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