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Offset mortgage calculator
See how much you could save
Use our offset mortgage calculator to see how your savings could reduce your mortgage term or monthly payments.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Offset mortgage calculator
The results from the calculator are just examples to help you plan your budget. It doesn’t provide all the details you need to choose a mortgage. We’ve also made certain assumptions to let us calculate the example figures for you (see ‘About our offset calculator’, below).
If you apply for a mortgage with us, we’ll give you a document called a Key Facts Illustration that includes full details of the mortgage. You can also save copies of our latest mortgage rates [PDF, 630KB] and our tariff of charges [PDF, 266KB], and read our important legal information.
After [info1TextPeakMonth] your savings balance will be the same as your mortgage balance and you could choose to use your savings to finish the mortgage reducing the term by [info1TextPeakReduction].
After [info2TextOffsetEnd] your mortgage balance will be zero and you could still have your savings. Doing this would have reduced your mortgage term by [info2TextOffsetEndReduced] and saved you £[info2TextEndSaving] in interest.
This is the point where your mortgage would end without an offset arrangement.
At the start of your mortgage, your monthly payment would be £[info4InitialPayment]; offset saving of £[info4InitialPaySaving] this month.
After [info5PeakMonth] your mortgage balance is now equal to your savings balance, so you can choose to settle your mortgage now. If you wish to continue making monthly payments, you will notice your capital repayments increase so that your mortgage balance can be cleared at full term of [info5OffsetTerm]
Congratulations, your mortgage term has now ended and your mortgage balance is £0.00. Offset savings to date are: [strong] £[info6TotalSavings][/strong]
You could reduce the term of your mortgage by [ymaddition]
By choosing to offset your savings of £[currentSavings] and reduce the term of your mortgage, we will collect the monthly mortgage of £[savingsMonthly] as normal. We will then deduct any offset benefit from the capital balance, thus your mortgage term would reduce by [timeReduction].
Offset savings will not automatically reduce the term of a mortgage balance that is partly interest only, just the amount of interest paid. To do this, you can
- Continue to pay the contractual monthly mortgage payment to reduce the mortgage balance.
- Use your savings to make overpayments to reduce the mortgage balance, as this will not be done automatically. Once your outstanding mortgage balance is the same or less than your savings balance, you can then pay off the outstanding amount.
The savings you have entered would not reduce your term
Offset savings will not automatically reduce the term of a mortgage balance that is partly interest only, just the amount of interest paid. To do this, you can
- Continue to pay the contractual monthly mortgage payment to reduce the mortgage balance
- Use your savings to make overpayments to reduce the mortgage balance, as this will not be done automatically. Once your outstanding mortgage balance is the same or less than your savings balance, you can then pay off the outstanding amount.
You could save £[savedInt] in mortgage interest when you offset your savings
Offsetting uses what's in your savings and current account to reduce the mortgage balance you are charged interest on. Based on information provided, this would reduce the amount of interest you pay on your mortgage by £[savedInt]. And with less interest to pay, you can pay your mortgage off quicker.
Because you are not earning interest on savings linked to your offset mortgage, you won't pay any tax on the balances offset. Saving you up to £[savePayingTax] in tax.
Save £[saveMonthly] on your monthly payments
By offsetting, your monthly mortgage payment is reduced to reflect the credit balances in your offset arrangement. Based on your input, your projected savings balance of £[projectSavings] would reduce your monthly payment to £[reduceMonthlyTo] - a reduction of £[reductionMonthly].
Save £[intSaved] in mortgage interest when you offset your savings
Offsetting uses what's in your savings and current account(s) to reduce the mortgage balance you are charged interest on. Based on your input, this would reduce the amount of interest you pay on your mortgage by £[intReducedBy].
Save paying £[saveTaxInt] in tax on your savings interest
Because you are not earning interest on savings linked to your offset mortgage, you won't pay any tax on the offset balances; saving you up to £[saveTaxInt] in tax.
Please enter your current property value.
Please enter a number without characters or spaces.
The value entered is too high/too low.
Please enter your mortgage amount.
Please enter a number without characters or spaces.
The value entered is too high/too low.
The value entered is too high/too low.
Please enter your Interest only amount.
Please enter a number without characters or spaces.
The value entered is too high/too low.
Please enter your repayment amount.
Please enter a number without characters or spaces.
The value entered is too high/too low.
Please enter your interest rate.
Please enter a number without characters or spaces.
Please enter a valid interest rate.
The value entered is too high/too low.
Please enter a number without characters or spaces.
Please enter a number without characters or spaces.
Please enter the saving rate.
Please enter a number without characters or spaces.
The value entered is too high/too low.
Please check this savings rate is correct. If yes, click next to proceed.
Please enter an amount.
Please enter a number without characters or spaces.
The value entered is too high
The current account value cannot be less than 0.
Please enter an amount.
The value entered is too high
The value entered is too high
The value entered is too high
Please select a month and year.
Please select a year.
Please select a month.
You have added a lump sum either before your loan would start or after your selected term would end. Please change your lump sum entry.
Offset savings will not automatically reduce the term of a mortgage balance that is interest only, just the amount of interest paid
Offset savings will not automatically reduce the term of a mortgage balance that is partly interest only, just the amount of interest paid
The savings you have entered would not reduce your term
You could repay your mortgage [strong][early] early[/strong] and still have access to your savings
You could save on average [strong]£[saveMonthly][/strong] on your monthly payments and still have access to your savings
Please enter a number without characters or spaces.
The value entered is too high/too low.
Please enter a number less than the mortgage amount.
The Interest Only and Repayment Amounts do not add up to the Mortgage Amount you have entered. Please note the Repayment amount has been adjusted to add up to the Mortgage Amount.
The Interest Only and Repayment Amounts do not add up to the Mortgage Amount you have entered. Please note the Interest only amount has been adjusted to add up to the Mortgage Amount.
Current rate: [strong][lowestRte]%[/strong] - This is the lowest offset mortgage rate which is currently available based on your [em][loantoval]% LTV[/em]
We currently do not offer an offset product with a [em][loantoval]% LTV[/em]. If you're able to, please reduce the mortgage amount required using your savings. If you're happy with your input, please enter an alternative interest rate and click option to continue with illustration anyway.
Please wait while the graph loads...
Normal Mortgage
Offset Mortgage
Offset Savings
Offset Mortgage Payments
Offset Mortgage Payments
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Outstanding Mortgage (£)
Monthly payment (£)
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0333 202 7580
About our offset calculator
The rates shown in this tool are just examples. The offset rates we may offer you will be based on the ratio of borrowing against your property value. We’ll need to talk to you about your circumstances and explain any other restrictions if you apply for an offset mortgage.
This calculator can only provide examples for repayment mortgages, so you can’t use it for situations that involve any interest-only or part-and-part mortgages. Any product fees or associated costs are not included in the interest calculation and are therefore not included in example figures you’ll get from the calculator.
Where you provide an interest rate, we'll assume this interest rate applies for the whole mortgage term. We’ll also assume that the benefit of any savings and/or current account balances will start from the first of the month and that there are 12 months in a year.
