With an Offset mortgage, the more you save the more you could save on your mortgage payments.
An Offset Mortgage is a way of using what’s in your savings and current accounts to reduce the mortgage balance you are charged interest on.
By offsetting you could reduce your mortgage term or your monthly mortgage repayments and still keep instant access to your savings.
Offsetting could be a good idea whatever the level of interest rates. When rates are low and affecting the returns you get on your accounts, as they are now, you may find your savings work harder for you with an Offset mortgage.
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Let’s say you had a mortgage of £180,000 and a total balance of £30,000 in your savings (including ISAs) and current accounts to offset against your mortgage. We’ll calculate your mortgage interest on the remaining balance of £150,000 only – potentially saving you thousands of pounds in interest payments over the term of your mortgage.
You can then choose to use this saving to:
- Reduce the term of your mortgage or
- Reduce your mortgage repayments.
The great news is that you still have instant access to your savings for as long as you have your Offset mortgage.
You can find out how much you could save with our Offset calculator.
Special features of our offset mortgage
 Unlimited overpayments available
Unlike many offset mortgages, ours lets you overpay as much as you like, whenever you are able.
We calculate interest daily - so your money works harder
Anything you put in your savings or current account starts working immediately to reduce the interest payable on your mortgage.
View and manage your Offset mortgage online
You can then see all your accounts online, alongside your mortgage account, and make transfers when it suits you.
You can choose from many eligible accounts
You choose up to 12 of your eligible Barclays current and savings accounts.
Keep a tab on your savings plans
We understand you may have different savings goals over various terms - with up to 12 accounts eligible to link to your Woolwich Offset Mortgage, you can keep separate accounts for all your savings needs and watch them grow. All the while you're still reducing the interest payable on your mortgage.
You keep any historical ISA allowances
If you've saved money in an ISA in the past you can offset this. But if in the future you don’t need to offset your ISA accounts, you will have retained your historical tax-free savings capability.
Your savings offset at the whole mortgage rate
By offsetting with Woolwich, your savings are offsetting at the full mortgage rate. For example, if your mortgage rate is at 6%, your savings and current account will offset the mortgage interest at that rate.
You can also reduce your tax bill
Even though your current and savings accounts do not earn interest, they do reduce what you pay on your mortgage – and you won’t pay tax on your savings because they’re not earning any interest. This is particularly efficient if you’re a higher rate tax payer because you won’t pay tax on savings interest earned.
Want to find how much you could save? Try our Offset calculator.
Download a copy of our Offset brochure for more information on Offset mortgages.
View our offset mortgage rates.
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