How to find the cheapest offset mortgage in the UK

(min 20) 0/2000

HaMuch is Excellent
By Emily Rivers
Last updated 14th April 2023

Save interest payments with an offset mortgage

An offset mortgage can be beneficial to borrowers who have a savings lump sum they want to be able to access easily, and could save them thousands of pounds in mortgage interest payments.

What is an offset mortgage?

An offset mortgage is a home loan where a person's savings are used to reduce the amount of interest paid each month, without actually spending the money. 

For example, if you had a £250,000 mortgage but put £30,000 in savings against the mortgage you'd only pay interest on £220,000. The mortgage lender would hold onto the £30,000 until you wanted it back, at which point interest would be charged at the new level. So if you wanted £10,000 back, you'd then start paying interest on the mortgage minus £20,000.

You still must repay the full mortgage, but you save money on the interest that is being charged.

An offset mortgage could save you hundreds of pounds in repayments each month, but they can come with higher rates which could negate some of the savings.

Cheap offset mortgage

What types of offset mortgages are available?

There are all the usual types of loans available with an offset mortgage. You could choose from:

  • Fixed rate mortgage: Interest is set for a certain period such as two, five or 10 years. 
  • Interest only mortgage: Only repaying the interest of a mortgage and then repay the mortgage in full at the end of the term.
  • Tracker mortgage: A variable interest mortgage where the interest moves up and down with the Bank of England's base rate.
  • Discount offset mortgage: Interest payments are at a discount of the lender's standard variable rate
  • Family offset mortgage: This is an offset mortgage where a family member can provide the savings capital, rather than the mortgage holder.

 

Offset mortgage rates

Offset mortgages can save you money on interest but the rates available are usually higher than a standard fixed or tracker deal. This is because they come with the flexibility of being able to access your savings when you want. 

When deciding whether an offset mortgage is right for you, it's a good idea to compare the savings you will make in interest repayments to the interest you could earn if that money went into a savings account instead. When interest rates are low it is difficult to make money on savings, but if they are stronger you may need to carefully compare money saved in interest repayments with the money you could make in a savings account. 

Another factor to consider is if putting the savings towards a deposit or to pay off more of the mortgage outright would free up access to lower mortgage rates for other deals. 

Our mortgage partners at Brighton & Hove compare rates of hundreds of deals to help you find the best price for your circumstances. Click here to fill out a short form and discover the rates.

How do offset mortgages work?

Offset mortgages work by putting your savings against your mortgage to lower the interest you pay. Savings ‘offset’ the amount of interest paid so while your mortgage may be £200,000, putting £20,000 savings against the mortgage means you pay interest on just £180,000.

Do I get my savings back with an offset mortgage?

Yes, you can get your savings back with an offset mortgage, usually at any time during the term. But if the savings are returned when the mortgage is still open you will start being charged more in interest repayments. 

If you still have savings in your offset account when the mortgage has been paid off, you will get these returned to you. Be aware that while the savings are in the offset account they won’t be earning interest, unlike if they were in a savings account. 

Can I withdraw money from an offset account?

Yes, you can withdraw as much or as little money as you want from your offset account. If you do withdraw money you will start paying interest on more of the loan because there will be less money offsetting the mortgage.


Estimated monthly mortgage costs

Job Estimate
Remortgaging £1195.00 per month
Cheap variable rate mortgage £1159.00 per month
Cheap tracker mortgage £1303.00 per month
Cheap offset mortgage £1088.00 per month
Cheap interest only mortgage £1147.00 per month
Cheap fixed rate mortgage £1245.00 per month
Cheap capital repayment mortgage £1256.00 per month
Cheap buy to let mortgage £1271.00 per month

Rates for other trades

Offset mortgage estimated monthly repayment based on average house prices 2023
Offset mortgage estimated month payment base on local average house prices, 75% LTV repaid over 25yrs source: uswitch - rate 289818%
Location in UKOffset mortgage cost
Offset mortgage near Aberdeenshire£754
Offset mortgage near Adur£1445
Offset mortgage near Allerdale£687
Offset mortgage near Amber Valley£882
Offset mortgage near Angus£637
Offset mortgage near Antrim and Newtownabbey£674
Offset mortgage near Ards and North Down£755
Offset mortgage near Argyll and Bute£705
Offset mortgage near Armagh City Banbridge and Craigavon£586
Offset mortgage near Arun£1391
Offset mortgage near Ashfield£719
Offset mortgage near Ashford£1416
Offset mortgage near Babergh£1326
Offset mortgage near Barking and Dagenham£1328
Offset mortgage near Barnet£2232
Offset mortgage near Barnsley£627
Offset mortgage near Barrow-in-Furness£544
Offset mortgage near Basildon£1462
Offset mortgage near Basingstoke & Deane£1393
Offset mortgage near Bassetlaw£743
Offset mortgage near Bath & North East Somerset£1672
Offset mortgage near Bedford£1319
Offset mortgage near Belfast£604
Offset mortgage near Bexley£1509
Offset mortgage near Birmingham£900
Offset mortgage near Blaby£1129
Offset mortgage near Blackburn with Darwen£553
Offset mortgage near Blackpool£510
Offset mortgage near Blaenau Gwent£513
Offset mortgage near Bolsover£661
Offset mortgage near Bolton£713
Offset mortgage near Boston£751
Offset mortgage near Bournemouth Christchurch and Poole£1321
Offset mortgage near Bracknell Forest£1514
Offset mortgage near Bradford£659
Offset mortgage near Braintree£1330
Offset mortgage near Breckland£1134
Offset mortgage near Brent£2096
Offset mortgage near Brentwood£1808
Offset mortgage near Bridgend£763
Offset mortgage near Brighton and Hove£1704
Offset mortgage near Broadland£1306
Offset mortgage near Bromley£1950
Offset mortgage near Bromsgrove£1379
Offset mortgage near Broxbourne£1527
Offset mortgage near Broxtowe£965
Offset mortgage near Buckinghamshire£1818
Offset mortgage near Burnley£440
Offset mortgage near Bury£896
Offset mortgage near Caerphilly£712
Offset mortgage near Calderdale£695
Offset mortgage near Cambridge£1984
Offset mortgage near Cambridgeshire£1363
Offset mortgage near Camden£3155
Offset mortgage near Cannock Chase£881
Offset mortgage near Canterbury£1414
Offset mortgage near Cardiff£1015
Offset mortgage near Carlisle£631
Offset mortgage near Carmarthenshire£817
Offset mortgage near Castle Point£1460
Offset mortgage near Causeway Coast and Glens£731
Offset mortgage near Central Bedfordshire£1444
Offset mortgage near Ceredigion£987
Offset mortgage near Charnwood£1110
Offset mortgage near Chelmsford£1461
Offset mortgage near Cheltenham£1285
Offset mortgage near Cherwell£1412
Offset mortgage near Cheshire East£1128
Offset mortgage near Cheshire West and Chester£1019
Offset mortgage near Chesterfield£764
Offset mortgage near Chichester£1775
Offset mortgage near Chorley£883
Offset mortgage near City of Aberdeen£513
Offset mortgage near City of Bristol£1352
Offset mortgage near City of Derby£784
Offset mortgage near City of Dundee£532
Offset mortgage near City of Edinburgh£1210
Offset mortgage near City of Glasgow£648
Offset mortgage near City of Kingston upon Hull£520
Offset mortgage near City of London£3324
Offset mortgage near City of Nottingham£729
Offset mortgage near City of Peterborough£942
Offset mortgage near City of Plymouth£848
Offset mortgage near City of Westminster£3399
Offset mortgage near Clackmannanshire£644
Offset mortgage near Colchester£1231
Offset mortgage near Conwy£824
Offset mortgage near Copeland£584
Offset mortgage near Cornwall£1199
Offset mortgage near Cotswold£1902
Offset mortgage near County Durham£501
Offset mortgage near Coventry£883
Offset mortgage near Craven£1056
Offset mortgage near Crawley£1252
Offset mortgage near Croydon£1631
Offset mortgage near Cumbria£731
Offset mortgage near Dacorum£1821
Offset mortgage near Darlington£606
Offset mortgage near Dartford£1352
Offset mortgage near Denbighshire£774
Offset mortgage near Derbyshire£898
Offset mortgage near Derbyshire Dales£1360
Offset mortgage near Derry City and Strabane£575
Offset mortgage near Devon£1295
Offset mortgage near Doncaster£630
Offset mortgage near Dorset£1376
Offset mortgage near Dover£1212
Offset mortgage near Dudley£892
Offset mortgage near Dumfries & Galloway£620
Offset mortgage near Ealing£2051
Offset mortgage near East Ayrshire£468
Offset mortgage near East Cambridgeshire£1287
Offset mortgage near East Devon£1405
Offset mortgage near East Dunbartonshire£979
Offset mortgage near East Hampshire£1766
Offset mortgage near East Hertfordshire£1717
Offset mortgage near East Lindsey£917
Offset mortgage near East Lothian£1175
Offset mortgage near East Midlands£943
Offset mortgage near East of England£1345
Offset mortgage near East Renfrewshire£1071
Offset mortgage near East Riding of Yorkshire£864
Offset mortgage near East Staffordshire£880
Offset mortgage near East Suffolk£1209
Offset mortgage near East Sussex£1372
Offset mortgage near Eastbourne£1160
Offset mortgage near Eastleigh£1331
Offset mortgage near Eden£1003
Offset mortgage near Elmbridge£2693
Offset mortgage near Enfield£1742
Offset mortgage near England£1165
Offset mortgage near England and Wales£1145
Offset mortgage near Epping Forest£2068
Offset mortgage near Epsom and Ewell£2036
Offset mortgage near Erewash£811
Offset mortgage near Essex£1450
Offset mortgage near Exeter£1263
Offset mortgage near Falkirk£615
Offset mortgage near Fareham£1388
Offset mortgage near Fenland£924
Offset mortgage near Fermanagh and Omagh£609
Offset mortgage near Fife£638
Offset mortgage near Flintshire£807
Offset mortgage near Folkestone and Hythe£1257
Offset mortgage near Forest of Dean£1214
Offset mortgage near Fylde£910
Offset mortgage near Gateshead£582
Offset mortgage near Gedling£945
Offset mortgage near Gloucester£948
Offset mortgage near Gloucestershire£1281
Offset mortgage near Gosport£1011
Offset mortgage near Gravesham£1279
Offset mortgage near Great Britain£1100
Offset mortgage near Great Yarmouth£861
Offset mortgage near Greater Manchester£884
Offset mortgage near Greenwich£1671
Offset mortgage near Guildford£1972
Offset mortgage near Gwynedd£793
Offset mortgage near Hackney£2388
Offset mortgage near Halton£731
Offset mortgage near Hambleton£1157
Offset mortgage near Hammersmith and Fulham£2814
Offset mortgage near Hampshire£1466
Offset mortgage near Harborough£1432
Offset mortgage near Haringey£2303
Offset mortgage near Harlow£1249
Offset mortgage near Harrogate£1258
Offset mortgage near Harrow£1983
Offset mortgage near Hart£1876
Offset mortgage near Hartlepool£532
Offset mortgage near Hastings£1124
Offset mortgage near Havant£1278
Offset mortgage near Havering£1631
Offset mortgage near Herefordshire£1163
Offset mortgage near Hertfordshire£1745
Offset mortgage near Hertsmere£1992
Offset mortgage near High Peak£982
Offset mortgage near Highland£784
Offset mortgage near Hillingdon£1755
Offset mortgage near Hinckley and Bosworth£1093
Offset mortgage near Horsham£1726
Offset mortgage near Hounslow£1765
Offset mortgage near Huntingdonshire£1211
Offset mortgage near Hyndburn£482
Offset mortgage near Inner London£2325
Offset mortgage near Inverclyde£464
Offset mortgage near Ipswich£906
Offset mortgage near Isle of Anglesey£944
Offset mortgage near Isle of Wight£1103
Offset mortgage near Islington£2519
Offset mortgage near Kensington and Chelsea£3755
Offset mortgage near Kent£1396
Offset mortgage near Kings Lynn & West Norfolk£1075
Offset mortgage near Kingston upon Thames£2143
Offset mortgage near Kirklees£733
Offset mortgage near Knowsley£694
Offset mortgage near Lambeth£2081
Offset mortgage near Lancashire£718
Offset mortgage near Lancaster£770
Offset mortgage near Leeds£902
Offset mortgage near Leicester£886
Offset mortgage near Leicestershire£1148
Offset mortgage near Lewes£1534
Offset mortgage near Lewisham£1735
Offset mortgage near Lichfield£1226
Offset mortgage near Lincoln£690
Offset mortgage near Lincolnshire£905
Offset mortgage near Lisburn£782
Offset mortgage near Liverpool£686
Offset mortgage near London£2005
Offset mortgage near Luton£1083
Offset mortgage near Maidstone£1351
Offset mortgage near Maldon£1616
Offset mortgage near Malvern Hills£1325
Offset mortgage near Manchester£888
Offset mortgage near Mansfield£681
Offset mortgage near Medway£1160
Offset mortgage near Melton£1173
Offset mortgage near Mendip£1309
Offset mortgage near Merseyside£736
Offset mortgage near Merthyr Tydfil£587
Offset mortgage near Merton£2154
Offset mortgage near Mid and East Antrim£603
Offset mortgage near Mid Devon£1195
Offset mortgage near Mid Suffolk£1276
Offset mortgage near Mid Sussex£1801
Offset mortgage near Mid Ulster£633
Offset mortgage near Middlesbrough£538
Offset mortgage near Midlothian£879
Offset mortgage near Milton Keynes£1202
Offset mortgage near Mole Valley£2213
Offset mortgage near Monmouthshire£1358
Offset mortgage near Moray£710
Offset mortgage near Na h-Eileanan Siar£560
Offset mortgage near Neath Port Talbot£633
Offset mortgage near New Forest£1583
Offset mortgage near Newark and Sherwood£913
Offset mortgage near Newcastle-under-Lyme£748
Offset mortgage near Newcastle-upon-Tyne£732
Offset mortgage near Newham£1622
Offset mortgage near Newport£913
Offset mortgage near Newry Mourne and Down£698
Offset mortgage near Norfolk£1125
Offset mortgage near North Ayrshire£485
Offset mortgage near North Devon£1223
Offset mortgage near North East£613
Offset mortgage near North East Derbyshire£972
Offset mortgage near North East Lincolnshire£579
Offset mortgage near North Hertfordshire£1451
Offset mortgage near North Kesteven£1038
Offset mortgage near North Lanarkshire£518
Offset mortgage near North Lincolnshire£713
Offset mortgage near North Norfolk£1261
Offset mortgage near North Northamptonshire£1042
Offset mortgage near North Somerset£1283
Offset mortgage near North Tyneside£779
Offset mortgage near North Warwickshire£1019
Offset mortgage near North West£805
Offset mortgage near North West Leicestershire£1068
Offset mortgage near North Yorkshire£1060
Offset mortgage near Northern Ireland£658
Offset mortgage near Northumberland£742
Offset mortgage near Norwich£951
Offset mortgage near Nottinghamshire£885
Offset mortgage near Nuneaton & Bedworth£900
Offset mortgage near Oadby and Wigston£1090
Offset mortgage near Oldham£721
Offset mortgage near Orkney Islands£837
Offset mortgage near Outer London£1861
Offset mortgage near Oxford£1776
Offset mortgage near Oxfordshire£1658
Offset mortgage near Pembrokeshire£912
Offset mortgage near Pendle£541
Offset mortgage near Perth & Kinross£906
Offset mortgage near Portsmouth£972
Offset mortgage near Powys£939
Offset mortgage near Preston£599
Offset mortgage near Reading£1257
Offset mortgage near Redbridge£1834
Offset mortgage near Redcar & Cleveland£600
Offset mortgage near Redditch£980
Offset mortgage near Reigate & Banstead£1845
Offset mortgage near Renfrewshire£558
Offset mortgage near Rhondda Cynon Taf£618
Offset mortgage near Ribble Valley£1072
Offset mortgage near Richmond upon Thames£2841
Offset mortgage near Richmondshire£985
Offset mortgage near Rochdale£735
Offset mortgage near Rochford£1678
Offset mortgage near Rossendale£750
Offset mortgage near Rother£1437
Offset mortgage near Rotherham£694
Offset mortgage near Rugby£1164
Offset mortgage near Runnymede£1875
Offset mortgage near Rushcliffe£1342
Offset mortgage near Rushmoor£1262
Offset mortgage near Rutland£1499
Offset mortgage near Ryedale£1148
Offset mortgage near Salford£820
Offset mortgage near Sandwell£765
Offset mortgage near Scarborough£818
Offset mortgage near Scotland£695
Offset mortgage near Scottish Borders£738
Offset mortgage near Sedgemoor£1133
Offset mortgage near Sefton£795
Offset mortgage near Selby£1007
Offset mortgage near Sevenoaks£2003
Offset mortgage near Sheffield£837
Offset mortgage near Shetland Islands£810
Offset mortgage near Shropshire£1093
Offset mortgage near Slough£1246
Offset mortgage near Solihull£1266
Offset mortgage near Somerset£1158
Offset mortgage near Somerset West and Taunton£1139
Offset mortgage near South Ayrshire£630
Offset mortgage near South Cambridgeshire£1725
Offset mortgage near South Derbyshire£969
Offset mortgage near South East£1496
Offset mortgage near South Gloucestershire£1366
Offset mortgage near South Hams£1478
Offset mortgage near South Holland£917
Offset mortgage near South Kesteven£1041
Offset mortgage near South Lakeland£1085
Offset mortgage near South Lanarkshire£612
Offset mortgage near South Norfolk£1308
Offset mortgage near South Oxfordshire£1968
Offset mortgage near South Ribble£806
Offset mortgage near South Somerset£1104
Offset mortgage near South Staffordshire£1123
Offset mortgage near South Tyneside£607
Offset mortgage near South West£1238
Offset mortgage near South Yorkshire£719
Offset mortgage near Southampton£956
Offset mortgage near Southend-on-Sea£1313
Offset mortgage near Southwark£2097
Offset mortgage near Spelthorne£1641
Offset mortgage near St Albans£2282
Offset mortgage near St Helens£677
Offset mortgage near Stafford£987
Offset mortgage near Staffordshire£939
Offset mortgage near Staffordshire Moorlands£876
Offset mortgage near Stevenage£1316
Offset mortgage near Stirling£924
Offset mortgage near Stockport£1149
Offset mortgage near Stockton-on-Tees£633
Offset mortgage near Stoke-on-Trent£541
Offset mortgage near Stratford-on-Avon£1469
Offset mortgage near Stroud£1304
Offset mortgage near Suffolk£1168
Offset mortgage near Sunderland£544
Offset mortgage near Surrey£2006
Offset mortgage near Surrey Heath£1785
Offset mortgage near Sutton£1672
Offset mortgage near Swale£1199
Offset mortgage near Swansea£733
Offset mortgage near Swindon£1015
Offset mortgage near Tameside£803
Offset mortgage near Tamworth£899
Offset mortgage near Tandridge£1977
Offset mortgage near Teignbridge£1269
Offset mortgage near Telford and Wrekin£854
Offset mortgage near Tendring£1090
Offset mortgage near Test Valley£1534
Offset mortgage near Tewkesbury£1359
Offset mortgage near Thanet£1198
Offset mortgage near Three Rivers£2202
Offset mortgage near Thurrock£1274
Offset mortgage near Tonbridge and Malling£1739
Offset mortgage near Torbay£1007
Offset mortgage near Torfaen£750
Offset mortgage near Torridge£1247
Offset mortgage near Tower Hamlets£1835
Offset mortgage near Trafford£1410
Offset mortgage near Tunbridge Wells£1767
Offset mortgage near Tyne and Wear£653
Offset mortgage near United Kingdom£1088
Offset mortgage near Uttlesford£1770
Offset mortgage near Vale of Glamorgan£1153
Offset mortgage near Vale of White Horse£1626
Offset mortgage near Wakefield£752
Offset mortgage near Wales£814
Offset mortgage near Walsall£813
Offset mortgage near Waltham Forest£1924
Offset mortgage near Wandsworth£2410
Offset mortgage near Warrington£983
Offset mortgage near Warwick£1418
Offset mortgage near Warwickshire£1213
Offset mortgage near Watford£1536
Offset mortgage near Waverley£2145
Offset mortgage near Wealden£1624
Offset mortgage near Welwyn Hatfield£1640
Offset mortgage near West Berkshire£1563
Offset mortgage near West Devon£1211
Offset mortgage near West Dunbartonshire£521
Offset mortgage near West Lancashire£875
Offset mortgage near West Lindsey£837
Offset mortgage near West Lothian£794
Offset mortgage near West Midlands£895
Offset mortgage near West Midlands Region£964
Offset mortgage near West Northamptonshire£1131
Offset mortgage near West Oxfordshire£1545
Offset mortgage near West Suffolk£1200
Offset mortgage near West Sussex£1526
Offset mortgage near West Yorkshire£773
Offset mortgage near Wigan£716
Offset mortgage near Wiltshire£1304
Offset mortgage near Winchester£1903
Offset mortgage near Windsor & Maidenhead£2108
Offset mortgage near Wirral£793
Offset mortgage near Woking£1872
Offset mortgage near Wokingham£1975
Offset mortgage near Wolverhampton£780
Offset mortgage near Worcester£987
Offset mortgage near Worcestershire£1150
Offset mortgage near Worthing£1323
Offset mortgage near Wrexham£767
Offset mortgage near Wychavon£1329
Offset mortgage near Wyre£750
Offset mortgage near Wyre Forest£948
Offset mortgage near York£1223
Offset mortgage near Yorkshire and The Humber£780