66 . 7 %
Mortgages and Furlough: How to get a mortgage after being on furlough. Read more Chevron

By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 19th March 2021*

We are contacted by lots of people every week wanting to know how to find the best interest rate on an offset mortgage and how to compare a range of offset mortgage deals.

An offset mortgage will potentially save you money by linking your mortgage to your savings account, but in order to truly make the best savings possible, finding a great rate is essential.

In this article, we’ll be covering the following:

Speaking with a whole-of-market broker can potentially save you time and money by sourcing offset mortgages with great rates. They tailor each search based on your circumstances and talk through your options with you – and this won’t cost you a penny.

Call us on 0808 189 2301 or make an enquiry and we’ll match you with an expert shortly.

We’ll find the perfect mortgage broker for you - for free

Save time and money with an expert mortgage broker who specialises in cases like yours

  • We've helped over 120,000 get the right advice
  • Our form only takes a minute, then let us do the hard work
  • Save up to £400 per year with the right advice (source: FCA)
  • All the brokers we work with have whole of market access

What affects offset mortgage rates?

Offset mortgage interest rates are mainly determined by how much of a risk a lender sees you as. This largely comes down to your perceived creditworthiness and ‘affordability’, plus the size of your deposit, among other factors.

Lenders tend to reserve the best offset mortgage rates for borrowers with clean credit and large deposits, but this doesn’t mean that you can’t get a great deal if you have some bad credit, or a smaller deposit. There are many variables the lender will take into account, and the mortgage market is large.

Wondering if your affordability might be a barrier? Get in touch and we’ll connect you with the expert advisors we work with. They may be able to find a lesser-known lender who’s perfect for you.

What are the current offset mortgage rates?

When it comes to mortgage rates of any kind (offset or otherwise), it’s always tricky to talk about current interest rates as they tend to fluctuate and can change at the drop of a hat. It is, however, more useful to know how to go about getting the best rates on the market.

You could very well do your own offset mortgage comparison by trawling through every lender on the phone or online, however (aside from the sheer amount of time and effort involved), some deals aren’t available to the public, but with a little help you can access them.

In order to get the best rate for your offset mortgage, you need to talk to the right broker.

How to find the best deals

Getting the best value offset mortgage comes down to two things: having access to the whole of the market and meeting the eligibility requirements at the lender offering the top deal.

The advisors we work with can provide you with access to the entire market, and you can read on to find out more about the eligibility criteria for offset mortgages.

Can I get good rates if I have bad credit?

This could well be possible, but keep in mind that the lowest offset mortgage rates will likely be harder to come by if you have any bad credit on your file.

That said, landing a cheap offset mortgage with adverse is by no means impossible, as there are specialist bad credit mortgage lenders who deal with customers with all kinds of credit problems every day. These bad credit lenders are flexible enough to take the age and the severity of the credit issue into account, as well as how closely you meet their other eligibility requirements.

The advisors we work with have access to every bad credit lender on the market, and they can introduce you to the provider best positioned to offer you favourable rates on an offset mortgage.

What else affects my chances of getting favourable offset mortgage quotes?

If you’re looking for the best offset mortgages on the market, your chances of success will likely increase if you meet the general lending criteria around the following factors:

Your age

Some lenders simply won’t lend to anyone above the age of 85, or 75. A minority of lenders won’t impose an upper age limit, provided you can make a strong case that you’ll be able to make your offset mortgage payments.

The type of property you want to buy

Where your property is and what it’s made of can be a deciding factor on whether a lender wants to offer you an offset mortgage. Many of them are wary of certain properties (such as timber frame constructions) that they deem ‘non-standard’.

Your income type, and how much you make

Lenders are most comfortable with people who make a large income through a conventional Pay As You Earn (PAYE) salary. If you’re looking to get a mortgage and you’re self-employed or have multiple income streams, a lender may be put off by what they deem as ‘non-standard’ income.

That said, some lesser-known and private lenders specialise in working with the self-employed and people with complex incomes. The advisors we work with can help you find these lenders.

Whether you already own property

If you’re already paying the mortgage on another property, lenders will want to know that you’ll be able to make the payments of an offset mortgage in addition to your current mortgage payments.

We can help you find an offset mortgage at the best rate

The experts we work with have their fingers on the pulse of the market and know exactly where to find the best offset mortgages. If it’s out there, and you’re eligible, they can help you get it.

Call us on 0808 189 2301 or make an enquiry. We don’t charge a fee and there’s no marks made against your credit.

Updated: 19th March 2021
OnlineMortgageAdvisor 2021 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Offset Mortgage Rates

Offset Mortgages

Get that ‘YES’ you’ve been waiting for 👍

Increase your chances of approval with an expert!

Our broker matching service will match you to a real human being who’s a specialist in your circumstances – for free!

Your expert will find you the best deal that’s right for you and be with you every step of the way.


Get Started