Make Big Savings with an Offset Mortgage

Choosing the right type of mortgage can save you thousands of pounds in the long term. If appropriate to your particular situation, one of the less common types worth considering is an offset mortgage.

Offset mortgages (and their predecessors, current account mortgages) have permanently changed the way that many Britons think about their mortgage. They can either help you reduce your monthly payments, or shorten the term and help you get mortgage-free sooner.

Typically you may want to consider offsetting if you have savings that you require access to but are unhappy with the punitive interest rates offered by easy access accounts.

Higher-rate tax payers may also want to consider offset mortgages as their savings will attract no interest and they will not have to declare this as taxable income. In other words, because you are effectively putting interest earned from savings or from a lump sum of money earned towards your mortgage, it is tax-free.

Applicants who are self- employed can use money set aside to pay their tax bill to offset and landlords can have their rental income paid into a savings account linked to their own residential offset, which can help reduce their own mortgage interest so is also very useful.

 

WHAT IS AN OFFSET MORTGAGE?

An offset mortgage is a homebuying loan that’s linked to your savings account to let you reduce how much interest you are charged. Any cash savings you have in that account are offset against the amount you owe. Lenders deduct this amount from your mortgage balance and only charge you interest on the remaining amount. For example, if you have a £200,000 mortgage but you have £20,000 in savings, you will only pay interest on £180,000 of the mortgage.

The more savings you have, the less interest you’ll have to pay on your mortgage.

 

WHY IS IT IMPORTANT TO REDUCE YOUR MORTGAGE INTEREST?

Interest can add up a lot over the full term of your mortgage. For example, if you were to repay a £200,000 mortgage over 25 years, at an interest rate of 3%, you’d pay over £80,000 in interest.  Anything that reduces the amount of interest you must pay – like an offset mortgage – can help you save a significant amount of money over the long-term.

 

DO YOU STILL HAVE ACCESS TO YOUR SAVINGS WITH AN OFFSET MORTGAGE?

Yes. One of the main advantages of an offset mortgage is that you can still use your savings if you need to. The money is still yours and you aren’t obligated to use it to pay off your mortgage at any point.

You just need to remember that, if you withdraw a significant amount of your savings, your monthly mortgage repayments will go up.

 

CAN YOU STILL ADD TO YOUR SAVINGS WITH AN OFFSET MORTGAGE?

Yes, you can still add to your savings, and this is often a sensible decision. The effect is the same as if you were to overpay on your mortgage, in that it will reduce the balance that you’re paying interest on.

However, the added benefit is that you can change your mind later and withdraw that money again if you need it. It isn’t usually possible to do this if you have overpaid your mortgage.

 

DO YOU STILL EARN INTEREST ON YOUR SAVINGS WITH AN OFFSET MORTGAGE?

No, you won’t earn interest on your savings. It’s important to bear this in mind, as over a long period (like a 25-year mortgage) inflation will reduce the buying power of your savings.

But the interest you save on your mortgage should add up more than the interest you would earn on your savings. You just need to compare the interest rates available to you for both mortgages and savings accounts to see if you’ll benefit.

 

WHY NOT USE YOUR SAVINGS AS A BIGGER DEPOSIT?

Using your savings to increase your deposit has the same effect as choosing an offset mortgage – it reduces the amount that you’re paying interest on.

The advantage of choosing an offset mortgage is that you can still access your savings later if you need to, whereas if you use them as a deposit, they are no longer accessible.

There are two advantages of using your savings as a bigger deposit. Firstly, you’ll have access to a wider range of mortgages, as offset mortgages are less common than other types. Secondly, you’ll be borrowing at a lower loan-to value ratio (LTV). Because of these two factors, you might be able to find a mortgage with a lower interest rate than the offset mortgages available.

The best option for you depends on your circumstances, and you might want to check with a mortgage broker to help you compare your options.

 

WHAT ARE THE ADVANTAGES OF OFFSET MORTGAGES?

  • You can pay lower monthly repayments
  • Or, you can overpay and be mortgage-free sooner
  • You will still have access to your savings if you need them
  • You won’t pay any tax on your savings as they are not earning interest
  • You’ll usually save more in mortgage interest than you lose in savings interest

 

WHAT ARE THE DISADVANTAGES OF OFFSET MORTGAGES?

  • You won’t earn any interest on your savings
    Offset mortgages typically have a higher interest rate than other mortgage types
  • There is a limited range of offset mortgages to choose from
  • You can sometimes be better off using your savings to increase your mortgage deposit.

 

ARE YOU LOOKING TO LINK YOUR SAVINGS AND MORTGAGE?

If you want to pay off your mortgage sooner or reduce your monthly payments, linking your savings and mortgage could help make it happen. Whether you’re a first-time buyer or already have a mortgage, looking for a fixed rate or a tracker option, talk to us about your requirements and we will help you to identify the most suitable mortgage for your needs.

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At Yes Mortgage Services, we offer a comprehensive range of products from across the market.

Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.

Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.

We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.

Yes Mortgage Services

Contact Us

YES Mortgage Services Limited
The Old Barn
Brooklands Farm
Mannington
Wimborne
BH21 7JU

Hours
Monday – Friday 0900 – 1700

Contacts
0800 612 5596
[email protected]

We don’t charge a broker fee

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Our friendly mortgage advisors are here to help. We have access to a comprehensive panel of lenders to ensure we research the most suitable mortgage solution for your needs. And the best bit? We don't charge a broker fee!⁣
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Our friendly mortgage advisors are here to help. We have access to a comprehensive panel of lenders to ensure we research the most suitable mortgage solution for your needs. And the best bit? We don`t charge a broker fee!⁣

Tap the link in our bio to learn more, or call us on 0800 612 5596 to arrange a chat. ⁣

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Buying your first home can feel a little daunting and maybe even a bit scary at times. ⁣
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Our free expert advice covers everything from saving for your deposit, getting your credit score healthy and your finances ready, right through to choosing the right building surveys and solicitors.⁣
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We'll cut through the jargon, talk through all of your questions (there's no such thing as a silly question in our minds), and guide you through finding the most suitable mortgage for your circumstances 🏡⁣
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The best bit is we don't charge a broker fee! - send us a message or give us a call on 0800 612 5596.⁣
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Buying your first home can feel a little daunting and maybe even a bit scary at times. ⁣

But we`re here to guide you every step of the way so you can feel comfortable and confident throughout the entire process 🙌⁣

Our free expert advice covers everything from saving for your deposit, getting your credit score healthy and your finances ready, right through to choosing the right building surveys and solicitors.⁣

We`ll cut through the jargon, talk through all of your questions (there`s no such thing as a silly question in our minds), and guide you through finding the most suitable mortgage for your circumstances 🏡⁣

The best bit is we don`t charge a broker fee! - send us a message or give us a call on 0800 612 5596.⁣

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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips
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Our amazing team of experts are always on hand to find the right mortgage solution for you and to answer any questions you might have. Send us a message, or call us on 0800 612 5596.⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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#mortgageadvisor #nobrokerfee #dorset #mortgagesmadesimple #dorsetbusiness #ukpropertymarket

Our amazing team of experts are always on hand to find the right mortgage solution for you and to answer any questions you might have. Send us a message, or call us on 0800 612 5596.⁣

...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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#mortgageadvisor #nobrokerfee #dorset #mortgagesmadesimple #dorsetbusiness #ukpropertymarket
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More and more investors are buying properties within a Limited Company to keep things tax efficient. ⁣
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But when it comes to refinancing or purchasing your new investment property, the process of getting a mortgage can feel challenging.⁣
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Our Specialist Mortgage Advisors know which Mortgage Lenders are used to working with Limited Company Buy to Let portfolios. They'll find you the most suitable deal and save you time and money by managing your mortgage application from start to finish. ⁣
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#limitedcompanybuytolet #ukpropertyinvestors #ukpropertyinvestor #landlordsuk #landlordsecrets #investmentproperty #ukpropertyinvesting

More and more investors are buying properties within a Limited Company to keep things tax efficient. ⁣

But when it comes to refinancing or purchasing your new investment property, the process of getting a mortgage can feel challenging.⁣

Not anymore!⁣

Our Specialist Mortgage Advisors know which Mortgage Lenders are used to working with Limited Company Buy to Let portfolios. They`ll find you the most suitable deal and save you time and money by managing your mortgage application from start to finish. ⁣

Visit our website to learn more (🔗 in bio)⁣

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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

Before pursuing Limited Company Buy To Let we recommend you seek advice from a tax expert⁣

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We believe in providing quality financial advice to everyone, regardless of their financial status. ⁣
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That's why we don't charge a broker fee 🤩⁣
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We'll look after you for the lifetime of your mortgage/home ownership, ensuring you never pay more than you should on your loan. Whether you're remortgaging, moving home, or making any subsequent property purchase, we've got you covered.⁣
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Visit our website (🔗 in bio) to learn more.⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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#mortgagetips #mortgageexpert #devonproperty #bournemouthbusiness #southcoastuk #mortgagebroker #mortgageuk #ringwood #hampshireuk #mortgageadviser

We believe in providing quality financial advice to everyone, regardless of their financial status. ⁣

That`s why we don`t charge a broker fee 🤩⁣

We`ll look after you for the lifetime of your mortgage/home ownership, ensuring you never pay more than you should on your loan. Whether you`re remortgaging, moving home, or making any subsequent property purchase, we`ve got you covered.⁣

Visit our website (🔗 in bio) to learn more.⁣

...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#mortgagetips #mortgageexpert #devonproperty #bournemouthbusiness #southcoastuk #mortgagebroker #mortgageuk #ringwood #hampshireuk #mortgageadviser
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Being self-employed has its perks, but when it comes to getting a mortgage, things can get a little tricky. But you don't have to navigate this process alone.⁣
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We have access to a wide range of lenders and a deep understanding of what each one looks for when it comes to self-employed mortgages. Meaning we can find the most appropriate lender for your circumstances and needs!⁣
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And the best bit? We don't charge a broker fee 🤩⁣
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If you'd like to chat with one of our advisors about self-employed mortgages give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage.  Yes Mortgage Services Limited do not charge a broker fee.⁣
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#selfemployedmortgage #selfemployedmortgages #selfemployed #dorsetbusiness #bournemouthbusiness

Being self-employed has its perks, but when it comes to getting a mortgage, things can get a little tricky. But you don`t have to navigate this process alone.⁣

We have access to a wide range of lenders and a deep understanding of what each one looks for when it comes to self-employed mortgages. Meaning we can find the most appropriate lender for your circumstances and needs!⁣

And the best bit? We don`t charge a broker fee 🤩⁣

If you`d like to chat with one of our advisors about self-employed mortgages give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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#selfemployedmortgage #selfemployedmortgages #selfemployed #dorsetbusiness #bournemouthbusiness
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A JSPB mortgage enables you to accept the financial support of your family while retaining a sense of independence through sole ownership of your property.⁣
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If you'd like to chat with one of our advisors about Joint Borrower Sole Proprietor Mortgages or buying your first home, give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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...⁣
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#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips #JSPBmortgage

A JSPB mortgage enables you to accept the financial support of your family while retaining a sense of independence through sole ownership of your property.⁣

If you`d like to chat with one of our advisors about Joint Borrower Sole Proprietor Mortgages or buying your first home, give us a call on 0800 612 5596 or send us a DM⁣

...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips #JSPBmortgage
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Life throws curveballs, don't let a leaky roof be one! Building insurance provides peace of mind knowing your home's structure is covered. Talk to Kelly, our insurance advisor, to find the right coverage for your mortgage.⁣
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Get in touch on 0800 612 5596 or tap the link in our bio.⁣
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#buildingsinsurance #protectyourhome #dorsetlife #insurancebrokers #insuranceadvisor #dorsetbusinessowners

Life throws curveballs, don`t let a leaky roof be one! Building insurance provides peace of mind knowing your home`s structure is covered. Talk to Kelly, our insurance advisor, to find the right coverage for your mortgage.⁣

Get in touch on 0800 612 5596 or tap the link in our bio.⁣

...⁣

#buildingsinsurance #protectyourhome #dorsetlife #insurancebrokers #insuranceadvisor #dorsetbusinessowners
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Connor joined our team back in July 2017!  He's lived all around the Southwest, from Cornwall to Bristol, and now he's found his sweet spot in Wellington, Somerset—right between the two!⁣
⁣
When he's not crunching numbers, you'll find him whipping up some delicious dishes, hosting get-togethers with friends and family or enjoying the delights at his local cider farm🍺🌿⁣
⁣
All of our mortgage advisors (Connor included) are ready to help you whether you're looking to remortgage, buy your first home, or upgrade to a new one. The best bit is we don't charge a broker fee! Get in touch on 0800 612 5596 or send us a DM⁣
⁣
⁣
...⁣
⁣
Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
⁣
...⁣
⁣
#ukmortgage #mortgagesuk #wellingtonsomerset  #mortgageexperts #westcountry

Connor joined our team back in July 2017! He`s lived all around the Southwest, from Cornwall to Bristol, and now he`s found his sweet spot in Wellington, Somerset—right between the two!⁣

When he`s not crunching numbers, you`ll find him whipping up some delicious dishes, hosting get-togethers with friends and family or enjoying the delights at his local cider farm🍺🌿⁣

All of our mortgage advisors (Connor included) are ready to help you whether you`re looking to remortgage, buy your first home, or upgrade to a new one. The best bit is we don`t charge a broker fee! Get in touch on 0800 612 5596 or send us a DM⁣


...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#ukmortgage #mortgagesuk #wellingtonsomerset #mortgageexperts #westcountry
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We're flying the flag for Somerset! ⁣
⁣
With a team spread across the Southwest, we're proudly celebrating #SomersetDay and sending a special shoutout to our amazing mortgage advisor, Connor, who's lucky enough to live there.⁣
⁣
Let's have a bit of fun - how many of these places can you name? Share your score in the comments 👇⁣
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#somersetlife #loveforsomerset #visitsomerset #somerset #somersetday

We`re flying the flag for Somerset! ⁣

With a team spread across the Southwest, we`re proudly celebrating #SomersetDay and sending a special shoutout to our amazing mortgage advisor, Connor, who`s lucky enough to live there.⁣

Let`s have a bit of fun - how many of these places can you name? Share your score in the comments 👇⁣


...⁣

#somersetlife #loveforsomerset #visitsomerset #somerset #somersetday
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