Your mortgage is linked to your current account, savings accounts, other loans and, in some cases, your credit cards. The interest on your debts is calculated on the total you owe.
a close relative of the current account mortgage
a type of mortgage common in the United Kingdom used for the purchase of domestic property, the key principle is the reduction of interest charged by 'offsetting' a credit balance against the mortgage debt
A real estate loan in which interest earnings from a saving or other account is diverted to lessen interest payments on the mortgage.
Operates in a similar manner to a current account mortgage except that rather than your various accounts being offset automatically you get the choice of which accounts to offset against each other and when.
This is a mortgage that is linked to a savings or deposit account. If you have a mortgage of £100,000 and savings of £10,000 you only pay mortgage interest on £90,000 but do not receive any interest on your savings.
This sis a fully flexable mortgage which allows the borrower to keep balances (such as mortgage debt, savings account and current account) in seperate accounts, but for the purposes of interest calculation, all balances aggregates. Money in savings or current accounts is set against the mortgage and interest is only charged on the outstanding ammount, meaning interest payments are reduced.
An offset mortgage allows you to keep your balances e.g. mortgage, savings, current account etc in separate accounts but all balances are offset against each other thus allowing the possibility of reducing the interest paid and could result in the mortgage being repaid early.
Offset or all in one mortgages allow you to offset the balance of your mortgage, and any other borrowings you have, against any money you have in a savings and/or current account that is held with the same lender. All your borrowings and savings may be combined in one account.
(Type of mortgage - see types of mortgage for detailed definition)
Offsetting is a way of managing your money using your current account, savings account and offset mortgage. You can 'offset' the credit balances you have in your current and savings accounts against your mortgage balance and pay interest (at the mortgage rate) on the difference only. This means that you could potentially reduce the total amount of interest you have to pay on your mortgage. You will not, however, earn interest on your credit balances. When offsetting credit balances against the mortgage, you have the option of keeping your mortgage repayments as they are, thereby paying the mortgage off more quickly, or keep the original term and reduce your monthly repayments (please note your mortgage repayments may vary). Either option may provide substantial savings.
This is a fully Flexible mortgage which allows a borrower to keep balances (such as mortgage debt, savings account and current account) in separate accounts, but, for the purposes of interest calculation, all balances are aggregated. Money in savings or current accounts is set against the mortgage balance and interest is only charged on the outstanding amount, meaning interest payments are reduced.
A type of flexible mortgage where you can use the money in your savings account to reduce the amount of interest you pay on your mortgage via offsetting. This can mean you pay off your mortgage quicker.
An offset mortgage is a type of mortgage common in the United Kingdom used for the purchase of domestic property.