Offset Mortgage
Offset mortgages use your savings or current account deposits against your mortgage debt to reduce the interest you pay and either reduce your monthly payment or reduce the repayment term of your mortgage.
How they work
The principle is simple: most mortgage borrowers also have savings, even if they are small, and using this money to cancel out mortgage debt makes sense. Savers avoid paying tax on interest that their deposits would otherwise have earned. And because offset mortgage lenders calculate interest daily, every pound on deposit works hard to reduce the cost of borrowing.
Not to mention the fact that in a low interest rate environment, any savings you have are effectively earning interest at a higher rate than most mainstream savings accounts will pay.
Any savings you have in the offset accounts are instant access so you do not have to worry about charges etc to get your money back. These mortgage can be set up with a single account or numerous different accounts if required.