Best Offset Mortgage Rates

Offset mortgages account for around 3% of all mortgages and are only offered by a handful of lenders. They’re often not widely advertised and are instead sought out by those who are “in the know” about finances and who understand their benefits.

If you’re looking for information about the current rates available for these products, you’re in the right place. Take a look at our table below to get an idea of the kind of deals available for offset mortgages.

All the above rates are purely for example purposes, were correct at the time of writing and are subject to change at any time at the lender’s discretion 

How to compare offset mortgage deals

The smart way to compare the best offset mortgage deals is to speak with a mortgage broker who will be able to offer their in-depth experience with. Make an enquiry and we’ll match you with an offset mortgage specialist today.

Your hand-picked offset mortgage broker will provide the following services:

• Helping you decide which mortgage features you need
• Identify which offset mortgages you’ll qualify for
• Compare the total costs and spot any hidden fees
• Secure the best rate and deal for you

Your initial consultation with your broker will be free with no obligation to proceed and it won’t leave any marks on your credit report.

What is the typical interest rate for an offset mortgage?

Offset mortgage rates are typically a little higher than an equivalent mortgage with no offset account. For example, the rate for a Barclays two-year tracker offset mortgage is 5.22%, compared to 4.26% for another two-year tracker within its range (at the time of writing, February 2023).

So, you can expect the cheapest offset mortgage rates to start at 4.24%-4.44%. Typical rates for offset mortgages go up to 6.99%. Please note, however, that the rates available could change at any time.

Rates for interest-only offset mortgages

Offset mortgages are available on either a capital repayment or interest-only basis. The rates are usually the same for either, but to get an interest-only offset mortgage, you’ll typically need:

• A larger deposit (the maximum LTV can be as low as 50%)
• A repayment plan for the end of the term (e.g. an endowment policy or pension lump sum)

Best offset remortgage rates

Some lenders offer specific remortgage rates or other incentives (e.g. cashback) to customers who are remortgaging.

These include:

• Accord Mortgages
• Coventry Building Society
• Family Building Society
• Scottish Widows

Please note that these remortgage deals are not necessarily the cheapest rate for someone in your position, as that will also depend on other factors such as your LTV and the type of mortgage you want. It’s always best to ask a mortgage broker for help to compare.

Why use Online Money Advisor

Because our free matching service could help you save time and money by pairing you with a mortgage broker who specialises in offset mortgages and arranges them every day.

Now that you know a little more about the range of rates available, the next step is to speak to a broker, who can start the process of finding the best offset mortgage deal for you. This will be easiest and quickest if you find a broker who specialises in offset mortgages.

We work with numerous brokers who can help you and we’d be happy to connect you with someone. To try our free broker-matching service, just call 0808 189 0463 or make an enquiry.