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Offset Flexible Mortgage

Helping you pay off your mortgage earlier

Offset flexible mortgage calculator Contact us

How can we help?

Call us

Call 0800 056 0567

Opening hours: 
Mon-Fri 8am-8pm, Sat 9am-4pm.
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

 

Overall cost for comparison

Product fee

4.00% variable

4.2% APR

£499

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

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. Depending on your tax band this means your effective savings rate would be:

  • 5.00% per annum for a basic rate taxpayer
  • 6.66% per annum for a 40% rate taxpayer
  • 8.00% per annum for a 50% rate taxpayer

Frequently asked questions

What people are asking us

Award winning mortgages

You're in good hands

We wouldn't usually blow our own trumpet like that. But buying a house is a huge commitment. And choosing the right mortgage provider, whether it's your first mortgage, or you're renewing an existing deal, makes a big difference. RBS have been awarded ‘Best Mortgage Lender Scotland’ in the 2013/14 Your Mortgage Awards.

In addition RBS has won the ‘Best National Bank’ for the 3rd year in a row in the 2014 ‘What Mortgage’ awards.

Your Mortgage

Best Mortgage Lender Scotland

 
 

What Mortgage

Best National Bank

 
 

Helpful banking

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 www.fscs.org.uk.

Offset Flexible Mortgage

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