Glossary
Mortgage Terms
Offset Mortgage
An offset mortgage links your savings account to your mortgage.. Instead of earning interest on your savings, the balance is offset against your mortgage — reducing the amount you pay interest on. For example, a £200,000 mortgage with £20,000 in savings means you only pay interest on £180,000
Offset mortgages are particularly tax-efficient for higher-rate taxpayers who would otherwise pay income tax on savings interest.
Related terms
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