Helping you pay off your mortgage earlier if you have savings

Offset flexible mortgage

What is an offset flexible mortgage?

With an offset mortgage, you can link your Royal Bank 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 can offset £10,000 and only pay interest on the £90,000.

If you keep the same monthly repayments based on the full amount of your mortgage, the balance will reduce faster - in other words, you could pay your mortgage off earlier.

Whilst offsetting, you don't earn any actual interest on the accounts you link to your mortgage. 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 4.25%.

Benefits of an offset flexible mortgage

Link your savings and current account balances to your mortgage

You could save thousands in mortgage interest as your savings balance reduces your mortgage payments

You'll continue to have access to your savings, bear in mind that if you spend them, you'll have less to offset and interest payments will rise.

Offset flexible mortgage at a glance

Keeping your money safe

We’re a member of the Financial Services Compensation Scheme (FSCS). Which means the Scheme can pay compensation to you if you’re eligible and we’re unable to pay claims against us.

The compensation limits for mortgage advice and arranging (after 31 October 2004) are maximum £50,000, i.e. 100% of the first £50,000 per person.

For more information, download the PDF below or visit www.fscs.org.uk

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