MoneySavingExpert ChairFounder, Martin Lewis · Editor-in-Chief, Marcus Herbert

Offset mortgage vs savings

An offset mortgage is where you have savings and a mortgage with the same lender and your cash savings are used to reduce – or 'offset' – the amount of mortgage interest you're charged.

Instead of a standard savings account, you could place your savings in an offset account linked to your mortgage. This means you won't pay interest on the mortgage debt of the equivalent amount of the savings. Use this calculator to work out if an offset mortgage works out better for you.

How big is your mortgage?


Max 40 years

How much do you have in savings?


1 to 10 years

Mortgage details

Now we'll compare using a standard mortgage and a savings account vs using an offset mortgage. You don't need to have applied for the products below yet. Just tell us the best rates you've found for each.

Using a standard mortgage


Using an offset mortgage


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IMPORTANT! Please read...

This information is computer-generated and relies on certain assumptions. It has only been designed to give a useful general indication of costs.

It's important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errors (please report faults above).

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