What is an offset mortgage and should you consider one?

Offset mortgages are a good way to put your money to work. We explain what they are and if they might work for you.

Couple stand at kitchen table as they look at laptop
An offset mortgage lets you use your savings to reduce the amount of interest you pay on your mortgage.
(Image credit: Fly View Productions via Getty Images)

Many homeowners are considering using their savings to overpay on their home loan – paying off some of their debt to try and reduce monthly repayments.

However, not everyone wants to part with their savings. That’s where an offset mortgage may offer a lifeline. An offset mortgage gives you the opportunity to use your savings to reduce the amount of interest you pay on your mortgage – without having to part with your money.

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Contributor

Holly Thomas is a freelance financial journalist covering personal finance and investments. 

She has written for a number of papers,  including The Times, The Sunday Times and the Daily Mail. 

Previously she worked as deputy personal finance editor at The Sunday Times, Money Editor at the Daily/Sunday Express and also at Financial Times Business.

She has won Investment Freelance Journalist of the Year at the Aegon Asset Management Media Awards in November 2021. 

With contributions from