Assumptions
This example is based on the figures you’ve provided, with the following assumptions:
- Your client makes no withdrawals throughout the term of the mortgage and their monthly deposit doesn’t vary
- There are no changes to your client’s tax situation and/or tax legislation
- No fees or costs associated with arranging or redeeming the mortgage have been taken into account
- The mortgage is advanced on the first of the month
- The initial deposit is credited to your client’s account at the time the mortgage is advanced
- The regular deposit is credited to your client’s account at the end of the month
Important Information
- Reduce the mortgage term (only available on repayment mortgages): the calculations shown are based on the mortgage interest saved (using the offset savings account) being used to reduce the mortgage interest payable during the reduced mortgage term.
- Reduce the outstanding balance (only available on Interest-only mortgages): the calculations shown are based on the mortgage interest saved (using the offset savings account) being used to reduce the outstanding balance of the mortgage each month.
- Reduce the monthly payments (available on repayment and Interest-only mortgages): the calculations provided are based on the mortgage interest saved (using the offset savings account) to reduce the mortgage interest payable each month.
- Important: any benefit you receive because of money in your offset savings account is based on the number of days in the month and paid to the mortgage account on the 1st of the following month. This means that, even if your client has the same amount of savings as their mortgage balance, there will still be a small payment due in some months.
The figures and illustrations above are a guide to give you an idea of the benefit of an offset product. A full illustration is available on request or online. This is not an offer of a mortgage. All applications are subject to lending criteria, product criteria and product availability.
Our recommendation is for all applicants to seek independent tax and legal advice.
This site is intended for the use of UK mortgage intermediaries and professional financial advisors only.
