Jump to section
An offset mortgage lets you link a savings account to your mortgage to reduce the amount of interest you pay on the outstanding amount. Instead of earning interest on your savings, you offset interest on the mortgage balance minus the amount of savings you have.
Offset mortgages offer many challenges for a borrower, and it’s important you seek financial advice from a mortgage advisor before you go ahead. Friends Capital will review your personal circumstances and then search the entire market to ensure you get the best mortgage deal possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:
Offset mortgages work by keeping your savings and your home loan in the same place. An offset mortgage is a mortgage that is linked to your savings account. Your savings balance can ‘reduce’ the mortgage amount, meaning you are charged interest on a smaller sum. The interest on your savings reduces the interest you pay on the loan, which means you can pay off your mortgage sooner.
Your savings are not used to pay off your mortgage. Instead, they sit in a separate savings account that pays no interest. But, the balance of your savings account is effectively added to your offset mortgage account. Lenders deduct this amount from your mortgage balance and only charge you interest on the remaining amount.
Friends Capital have relationships with lenders that specialise in offset mortgages. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:
One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation.
When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available.
If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’.
If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf.