This is a mortgage that is linked to one of your saving accounts, this will reduce the amount of interest you pay on your mortgage amount. Your savings account and your mortgage need to be with the same provider so that they can see what you have in your savings and if more money goes into that account.



There is also no limit on how much you can offset your mortgage for, you can 100% offset if you wish to do so which means you will pay no interest on the mortgage, to do this you will need the same amount of money in your savings as the overall amount of your mortgage.

However, there are some disadvantages to this type of mortgage. If you make withdrawals from the linked savings account, then your monthly payment will increase as the rate of interest will also increase. The savings account that is linked to the mortgage will not earn any interest as the interest you are saving on your mortgage replaces the interest you will usually receive on your savings.

You will still pay your monthly payment has normal and you will only pay interest on the difference between your offset savings and the amount of your mortgage. To maximise your offset account, you need to maintain a high balance in your savings account, the more the better.

At LTC Mortgages we look at all of your options to decide with you whether or not this is the most suitable type of mortgage for your circumstances, for more information or to book an appointment with us contact us via email [email protected] or call us on 0151 662 0188.