Your home may be repossessed if you do not keep up repayments on your mortgage.

An Offset mortgage links your Offset savings account to your mortgage to reduce the mortgage interest you're charged – this is called the Offset benefit.

For example:

Your mortgage is £100,000. You have £20,000 in your Offset savings account.

You still have to make capital repayments on the whole mortgage balance of £100,000, but you only get charged interest on the difference between your mortgage and your savings – in this case £80,000. Plus you won’t pay any income tax on your Offset savings.

There’s more about how an Offset mortgage works here: Offset guide

You can use the mortgage interest you save – the Offset benefit – to either:

1) Reduce your monthly mortgage payment the following month or the month after that, depending on when the payment is due, or

2) Reduce the outstanding mortgage balance each month and therfore shorten the time left to pay off your mortgage.

You can easily switch between these two options by calling us on 0800 121 8899.

If your offset savings balance is larger than your mortgage you won't receive any Offset benefit on the excess amount. If this is the case for you, we recommend you review your savings. You may wish to move the excess amount into an account that pays you interest on your savings.

You don't have to put any savings into your Offset savings account, but we want to ensure your money is working as hard for you as possible. Talk to us if you'd like a mortgage review.

No, because we don't pay interest on the savings. And there's no income tax liability either.

For more about this, go to www.gov.uk and type ‘personal savings allowance’ in the search box.