Offset Mortgage Calculators

Want to know how much your monthly repayments would be for an offset mortgage? Use our calculator below to find out.

Home Mortgage Calculators Offset Mortgage Calculators
Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Updated: January 4, 2024

You can use our calculator below to work out what your monthly repayments will look like on an offset mortgage agreement compared to a standard repayment mortgage.

We have highlighted the difference between the amounts using green text so you can see how much you could save.

calculator icon

Offset Mortgage Calculator

This calculator shows you how your mortgage payments could look if you choose an offset mortgage and how much you could potentially save with this product type.

The total amount you're borrowing
£
Enter the mortgage rate, 5.5% is a typical rate currently but this can vary
%
Enter the mortgage term, 25 years is the average but lenders can offer shorter and longer terms
years
Enter an amount in pound sterling
£
Savings amount must be less than the loan amount

Without offset savings:

Monthly repayments:

Total cost:

With offset savings:

Monthly repayments:

Total cost:

Now that you have a rough idea of how much you could save on interest by offsetting your mortgage, you should speak to a specialist broker for bespoke advice about offset mortgages and access to the best deals that you qualify for.

Calculators are great, but they don't tell you everything you need to know. If you'd prefer an expert advisor to help, fill this out!

How this calculator works

An offset mortgage calculator can help you work out how much you could save on your interest payments by choosing this variety of mortgage over another product type.

With an offset mortgage, the amount you have in the offset savings account is deducted from the mortgage balance and interest is only payable on the difference between the two amounts. This calculator takes that into account and presents you with two sets of mortgage repayment results: one with offset savings and another for a standard repayment mortgage.

The results are based on the amount you’re borrowing, how much savings you’re planning to offset, the mortgage term length and the interest rate you enter. The two sets of results illustrate how much your mortgage could cost each month and overall, as well as how they compare.

Are the calculations any different for interest-only mortgages?

For an interest-only offset mortgage, subtract the amount of savings you have from the mortgage loan amount and work out how much interest would be due on the remaining figure.

You can enter this amount into our mortgage repayment calculator below and convert the results into ‘interest-only’ to get a rough idea of your monthly repayments.

Calculator Icon

Mortgage Repayment Calculator

Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.


Enter the amount you're borrowing
£
Enter the mortgage rate, 5.5% is a typical rate currently but this can vary
%
Enter the mortgage term, 25 years is the average but lenders can offer shorter and longer terms
years

Monthly Repayments:

Total amount paid at end of term:

Get started with an expert broker to find out how much they could help you save on your mortgage repayments.

Calculating your overpayments

Some offset mortgages come with flexible features such as the ability to make overpayments, as either an additional monthly or a lump sum. To work out what your mortgage balance will look like with extra payments factored in, work out the difference between your mortgage loan and the amount of savings you’re offsetting, and run the results through the calculator below.

Calculator Icon

Mortgage Overpayments Calculator

This calculator can show you how much you could save and what your new mortgage payments will look like if you were to make overpayments as a lump sum, monthly amount or both.

Estimate if not known
£
Years and months
Enter a percentage
%
An amount in pound sterling
£
An amount in pound sterling
£
Overpayment must be less than outstanding balance

Your current monthly repayment is:

What your mortgage repayments will look like based on your overpayments:

Potential mortgage term reduction:

Amount of interest you could save:

Now that you have a rough idea of how overpayments will affect your mortgage deal, make an enquiry to speak to a broker for bespoke advice about whether this is the right option for you.

What you should do next

Now that you’ve carried out your calculations, your next step should be to speak to a broker who specialises in offset mortgages to put that number crunching into perspective.

Remember, any mortgage calculator can only provide a rough estimate about your mortgage repayments, but an offset mortgage specialist is best placed to provide bespoke calculations and advise you on how to act based on the numbers that have been calculated for you.

Call 0808 189 2301 or make an enquiry with us today and we’ll match you with a broker who specialises in offset mortgages for personalised calculations and access to every lender in this corner of the market.

FAQs

If you have the same amount in offset savings as your mortgage balance, you might think there will be no interest to pay each month, but that isn’t how the calculations will work.

This is due to the differences in the way that credit interest and debit interest is worked out. Credit interest is based on the number of days in the calendar month, while debit interest – such as mortgage interest charges – divides the year into 12 equal months.

This means that there will likely be at least some interest payments to factor into your calculations if you take out a 100% offset mortgage.

Yes. Regardless of whether it’s yourself or a family member placing savings into the offset account, the mortgage interest payments will still be based on the difference between the outstanding mortgage balance and the amount of savings in the offset account.

Calculators are great, but they don't tell you everything you need to know. If you'd prefer an expert advisor to help, fill this out!

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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