Offset Flexible Mortgage | Royal Bank of Scotland

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Offset Flexible Mortgage

Use your savings to help pay off your mortgage quicker

Royal Bank mortgages are available for over 18s

Your home may be repossessed if you do
not keep up repayments on your mortgage
An Offset flexible mortgage - what you need to know

 Join up your mortgage to your savings and current account

 Over 18s only



 You could save thousands in mortgage interest and pay off your balance faster

 Continue to access your savings whenever you need them



Interest rate


Product fee

4.25% variable


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

Representative Example

A mortgage of £118,507 payable on a variable rate of 4.25% for a mortgage term of 15 years would require 180 monthly payments of £891.50.

The total amount payable would be £161,238.12 made up of the loan amount £118,507 plus interest of £42,731.12. 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 4.4% APRC representative. Balances held in linked accounts will reduce the amount of interest payable.

How does an Offset Flexible Mortgage work?

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.

Your monthly repayments will continue to be based on your full mortgage amount, so this means you’ll be able to pay it off quicker, as your balance reduces faster.

You’ll still have full access to your accounts and can take out money whenever you would like to. Managing your money online, over the phone or in branch will not be affected.

See how this compares to a standard mortgage

Using your savings wisely

When you use your savings to ‘offset’ your mortgage, you won’t earn interest and the effective rate is equal to the current 4.25% mortgage rate. This is because your savings are used to reduce your mortgage balance instead.

Also, you won’t have to pay any additional tax on your savings income (as you’re not technically earning interest), which might be helpful if you’ve already used your personal savings allowance for the year.

Frequently asked questions Some questions you may have
Time to apply for an Offset Mortgage?

We are a member of the Financial Services Compensation Scheme (FSCS). Further information is available here (650k PDF) or visit

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