Offset Mortgage Calculator

Use this offset mortgage calculator to work out how much interest you could save (and how quickly you could pay off your mortgage) by offsetting your savings against your mortgage balance. Offsetting works by using your savings to reduce the mortgage balance you are charged interest on. This will reduce the amount of interest you pay on your mortgage and with less interest to pay, you can pay your mortgage off quicker.

Because you are not earning interest on savings linked to your offset mortgage, you wont pay any tax on the balances offset and you can still access them when you need to. However, withdrawing some of your savings may increase your mortgage term or monthly repayments.

You should note that this calculator makes certain assumptions, for example, that there are no fees, charges or any additional borrowing added to the mortgage and that the interest rate remains fixed at the level set for the whole term.

To use the calculator, enter your figures directly into the corresponding fields & then press 'Calculate'. Your results will appear below the calculator.

Mortgage AmountHow much do you need to borrow?

Interest RateAt what interest rate?

Term in YearsOver how many years?

Current SavingsWhat is your current savings balance?

Monthly SavingsHow much extra can you save monthly?

Your Tax BandWhat is your current income tax band?

The results of your calculations

A monthly repayment of could pay off your mortgage in when you take the reduced term option and you would still have all of your offset savings available. This would give total interest savings of which is how much interest you will not be charged on your mortgage because you have been offsetting your savings.

You would also save which is the tax you would have paid on your savings had they earned interest at . Based on your tax bracket of you would need to find an instant access savings account paying interest of more than to beat the offset deal.

Or, if you wanted, you could pay off your mortgage in using your accumulated offset savings of .