5 articles tagged with Offset Mortgage.
How an offset mortgage compares to keeping savings in an easy-access account or Cash ISA once savings interest tax is factored in for 2026/27.
An offset mortgage links your savings to your loan to cut interest. Learn how offsetting works, who benefits in 2026, and the tax angle for UK savers.
Offset mortgages let savings reduce interest (no tax on offset savings). Standard mortgages allow 10% annual overpayment. We compare both strategies for a GBP 200k mortgage at 4.5% over 10 years with worked examples.
An offset mortgage links your savings to your mortgage, so you only pay interest on the difference. For higher-rate taxpayers with substantial savings, the benefit can be significant.
Overpaying your mortgage by £200/month on a £200k, 25-year, 4.5% deal saves around £28,000 and cuts 5 years off your term. But the 10% annual limit, ERC traps, and low-rate fixed deals can change the maths. Full guide with worked examples.
