We’ve talked in the past about offset mortgages and how they can actually be a smart way to manage your finances, potentially saving you interest or helping you pay off your loan sooner. However, the reality is they’re currently not as widely available as standard fixed-rate or variable-rate deals, leading many to ask the key question: who offers offset mortgages?

This guide explores the availability of offset mortgages in the UK market right now. We’ll touch on what they are, why they’re less common than other types of mortgage and crucially provide insights into how you can discover who offers offset mortgages that could suit your financial goals.

 

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A quick recap: What are offset mortgages?

Before we delve into who offers offset mortgages, let’s briefly recap. An offset mortgage links your savings account(s) directly to your mortgage debt. Instead of earning interest on your savings, the balance is ‘offset’ against the amount you owe on your mortgage.

The result? You only pay interest on the difference, reducing your overall interest payments or helping you clear the loan more quickly.
It’s a flexible option that can be particularly beneficial for certain individuals.

Find out more about how interest is calculated

Why doesn’t every lender have an offset mortgage?

When you first start looking, you’ll soon notice offset mortgages don’t appear in every lender’s product list. There are a few reasons for this.

Firstly they can be more complex for lenders to administer compared to straightforward repayment or fixed-rate products.

Secondly they appeal to a more specific segment of the market, typically individuals with substantial savings who are comfortable with this type of financial management.

Lenders often focus their main offerings on products with broader appeal.

Therefore when asking “who offers offset mortgages?”, the answer isn’t “most mainstream lenders” which is why a targeted search is often necessary.

So who does offer offset mortgages in the UK?

While not as common as other types of mortgage, some financial institutions in the UK do provide offset mortgage products. The specific names on the list of who offers offset mortgages can change as lenders update their product ranges but generally you might find them with:

Building Societies

Historically many UK building societies are known for offering a more diverse and sometimes more flexible range of mortgage products than some larger high street banks. They often cater to niche requirements and an offset facility can fall into this category. Several well-known building societies consistently feature offset options in their mortgage portfolios.

Some High Street Banks

While not all major high street banks will have offset mortgages as a standard offering, some do provide them often as part of their premier banking services or for customers who meet certain criteria (such as higher income levels or larger mortgage amounts). Their availability can be more sporadic compared to building societies.

Check out our guide: do banks still offer offset mortgages?

Specialist Lenders

There are also smaller or specialist lenders in the UK market who focus on particular niches or borrower types. Some of these may include offset mortgages in their product lineup to attract specific customers looking for this kind of flexibility.

It’s important to remember that the mortgage market is dynamic. The exact list of lenders providing offset mortgages can vary over time due to changes in funding conditions, market strategy and regulation.

Find out more about the average mortgage interest rate in the UK

OneDome is here to help

Choosing a mortgage is complex but OneDome is here to help. If you have any questions about the specifics of mortgages, the wider mortgage process or want tailored advice on the different types of mortgages that suit your situation you can:

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