What is an offset mortgage?

With an offset mortgage, your savings and current account balances are linked to your mortgage account in order to reduce the mortgage balance you pay interest on. When you take out a Clydesdale Bank offset mortgage, you will have the choice to open up to six accounts, which can be any combination of eligible current and savings accounts, to link to your offset account.

Instead of earning interest in these accounts, the deposited money in these accounts would be used to offset the balance on your mortgage. So, you will only pay interest on the difference between your savings and your debit mortgage balance. For example, if you have a £80,000 mortgage and you have £10,000 in your linked current and savings accounts, your monthly mortgage interest would be calculated on £70,000, not on the full mortgage balance of £80,000.

Applicants must be aged 18 or over, All loans are subject to status. Security will be required.

Advantages of our offset mortgages

• You will still have access to your savings
• If you have a positive balance in your current or savings account, a higher proportion of the mortgage payments you make will go towards repaying the capital
• You have the option to increase your mortgage repayments, so you can pay off your mortgage sooner and reduce the amount of interest you need to pay back during your mortgage period.
• Depending on your circumstances, you could be eligible to enjoy payment holidays between 3 and 6 months, where you can temporarily stop or reduce your mortgage payments if you’ve made sufficient overpayments or lump-sum repayments. However, please note that interest will continue to accrue during a payment holiday
• You can access overpaid funds if you've made sufficient overpayments or lump sum repayments. However, payment holidays and access to overpaid funds are not available during a concessionary period.

Is an offset mortgage right for you?

If you have credit balances in your eligible savings or current account you could save money with an offset mortgage. Interest is calculated daily, meaning that your money will work harder every day it's in your account.

The value of any tax benefits to you depends on your individual circumstances, the Law and Her Majesty’s Revenue and Customs (HMRC) practice which are subject to change.

Our offset mortgages

Please review our table of offset mortgages products. If you need more information, our advisors are on hand to help with your mortgage queries.