An offset mortgage lets you use your savings to reduce the amount of interest you’ll pay on your mortgage. All you need to do is link your eligible Yorkshire Bank savings and current accounts to your mortgage, and you won’t be charged any mortgage interest on the value of your savings
You won’t earn any interest on your savings when they’re linked to your mortgage, but you’ll still have the same access if you need to take money out. The more money you have in credit balances, the more interest you will save.
Your mortgage payments will not change, however more of your monthly repayment will go towards paying the balance of your mortgage off. This will allow you to save money on the interest charged on your mortgage and if you have a repayment mortgage it may help you to reduce your term.
To give you an example, if you have a £100,000 offset mortgage with us and £20,000 in a linked account, you'll only pay interest on the £80,000 difference.