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Offset Flexible Mortgage Calculator
Pay off your mortgage faster – without increasing your monthly payment. Try entering different figures - you may be able to pay off earlier.
New customers 0800 096 9527
Existing customers 0800 092 9585
Customers with hearing and speech impairments can contact us by Minicom number 0800 917 0526
Lines are open:
Service - Mon to Fri 8:30am - 6pm, Sat 9am - 12:30pm.
Sales - Mon to Fri 8am - 8pm, Sat 9am - 4pm. Excluding public holidays. Calls may be recorded.
Offset Flexible Mortgage Calculator
How we do our calculations
How did we calculate your Offset rate?
The figures shown in the Offset Flexible Mortgage calculator are indicative only. The actual interest cost, actual repayment time, and your actual savings will depend on the balances you maintain in your linked accounts and other factors such as future interest rates.
The illustration does not include the cost of life assurance, buildings insurance, ISA or endowments. If you want a detailed illustration based on all your specific requirements, please call 0800 068 9170 or contact your local branch.
What assumptions have we made?
To allow us to calculate a result we have to make some assumptions. These are as follows:
- the savings and current account balances you have entered do not change over the term of your mortgage
- your mortgage payments do not change over the term of the mortgage
- the current account interest rate equals our Select Account rate
- any monthly savings are paid for the duration of the mortgage
- any monthly overpayments are paid for the duration of the mortgage
- only one lump sum payment is made during the term of the mortgage
How much could I save calculation
Taking into account the values you supplied us; this compares the interest payable on the full balance of your Offset Flexible Mortgage with no offsetting, against the interest payable on the reduced mortgage balance. Credit interest received is not taken into account.
Equivalent Rate Calculation
The equivalent rate is calculated by converting the ‘total amount payable’ figure after offsetting into an interest rate based upon the original mortgage amount, term and repayment type you specified. It assumes there would be no product fee to open the mortgage with the equivalent rate.
Offset Flexible Mortgage
Contact us
New customers 0800 096 9527
Existing customers 0800 092 9585
Customers with hearing and speech impairments can contact us by Minicom number 0800 917 0526
Lines are open:
Service - Mon to Fri 8:30am - 6pm, Sat 9am -12:30pm.
Sales - Mon to Fri 8am - 6pm, Sat 9am - 4pm.
Excluding public holidays. Calls may be recorded.
Offset flexible mortgage
Do I have access and still earn interest on my savings?
Do I have access to my savings?
Yes - you can access them whenever you want.
Do I still earn interest on my savings?
Whilst offsetting, you don't earn any actual interest on the accounts you link to your mortgage. Instead your savings are used to reduce (or "offset") your mortgage balance. What this means is that the effective rate earned on your savings is equal to the mortgage rate - currently 4%.
In addition, because you're not technically earning interest (you're avoiding paying the mortgage interest instead) you don't have to pay any additional tax on your savings income.
Offset flexible mortgage
Do my mortgage payments stay the same?
Your mortgage payments will depend on changes in interest rates. Increasing or decreasing the amount of savings that you offset will not change your payments.
If the interest rate goes down, you can:
- Keep your payment amount the same - which will help to reduce the outstanding balance on your mortgage quicker
- Reduce your payments - to match the new rate. There is a minimum monthly payment amount that you cannot go below
If you already pay more than the minimum repayment amount and the interest rates go up, as long as your payment continues to cover the new interest rate, we will not change your payments.
If you take a payment holiday, underpay or take additional borrowing, your repayments may also change.
Offset flexible mortgage
How many current and savings accounts can I include in an Offset Banking arrangement?
You can include one eligible current account and up to three eligible First Reserve savings accounts. With Business Offset you can include certain business current and savings accounts.
Offset flexible mortgage
Can I make additional payments to my mortgage?
Yes. With an Offset Flexible Mortgage you can make additional payments to your mortgage any time and there's no penalty for repaying all or part of your mortgage early.
Offset flexible mortgage
What is a payment holiday?
You can apply to take a repayment holiday. With a payment holiday, you don't need to make any mortgage payments for an agreed period up to six months. This can help ease the financial pressure if you need money for another purpose for a short term. Interest continues to accrue during a payment holiday and will be added to the loan. At the end of a payment holiday your monthly repayments are likely to be higher.
Offset flexible mortgage
What type of current account can I link to an Offset Flexible Mortgage?
You can link a Select, Select Silver, Select Platinum Account, Black Account, Current Plus, The Private Bank Account, Advantage Private, Advantage Gold or Graduate account to an Offset Flexible Mortgage. If you have eligible business accounts, these can also be used.
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