Offset Tracker Mortgages
Find out how offset tracker mortgages work and whether this might be a good borrowing option for you.
Are you looking for a Tracker Mortgage?
No impact on credit score
Why use us?
At OnlineMortgageAdvisor we know that everyone's circumstances are different. That's why we only work with expert brokers who have a proven track record in securing mortgage approvals
- Higher chance of approval
- No impact on credit score
- Mortgage Approval Guarantee - or £100 back*
- We don't charge a fee
- There for you every step of the way
- Rated excellent on Trustpilot, Feefo and Google
If you have any questions,
feel free to call us on 0808 189 2301
If you have a nest egg put away and are wondering how it might help towards your mortgage without having to put it all across, lenders offer a specific product that does this, while still allowing you to keep your savings intact.
While a good mortgage broker will be able to talk you through your options, here are tracker offset mortgages explained to help you understand whether this type of loan, coupled with this kind of repayment style, might work for you.
What is an offset tracker mortgage?
As the name suggests, these products are offset mortgages taken out with a ‘tracker’ repayment type, meaning that your interest rate can move up and down during the term.
Offset mortgages, in general, are a way of reducing the interest you pay on your mortgage by swapping it for any interest you’d otherwise gain on your savings with the same bank. This, in turn, brings down your monthly repayments, which might allow you to pay your loan balance off quicker or benefit from more disposable income.
There are a number of options with offset mortgages, but the tracker element refers to how your interest is calculated. Rather than fixing, the rates will ‘track’ an external marker, usually the Bank of England’s base rate, so your monthly repayments will be dictated by economic fluctuations in interest, rather than just your lender.
Speak to an expert about offset tracker mortgages
Maximise your chance of approval with a dedicated specialist broker
How do they work?
Your mortgage provider will hold an offset savings account for you, where you keep your surplus funds. You won’t receive any interest for this money like you would in any other savings account, but instead it will be used to bring down the amount of interest you’ll pay out with your mortgage.
For example, if you have a mortgage of £200,000 and you have savings of £60,000, you would only need to pay interest on £140,000. What your actual repayments will be will depend on the external marker your mortgage is tied to and what your lender has set their tracker mortgage rates at above that. This works in a very similar way to standard tracker mortgages.
How a broker can help you find one
If you’ve established you’d like to explore more about offset mortgages, whether an offset tracker is right for you, rather than a fixed-rate or another type of variable rate, for example, is something you should be sure about.
A good broker will talk you through your options and bring clarity to what can seem like a complex route. They should provide impartial guidance and support too, and ultimately hold your hand through any application process, which should stand you in better stead when it comes to getting a good deal.
Make an enquiry to use our matching service to find a broker who specialises in offset tracker mortgages.
We're so confident in our service, we guarantee it.
We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*
What are the benefits?
These days having lots of money in the bank and benefiting from the interest that’s generated by it is largely a thing of the past, however this product is a way of ensuring your savings work that bit harder for you, rather than just sitting in an account not doing a great deal.
While you’re losing gains in interest from your savings, this amount will likely be less than the amount you pay out in interest via your mortgage. So, if you can offset your mortgage interest, you could be better off.
Of course, how much you have in savings will be the real decider in how well this type of mortgage might work for you. If you have an equal amount of savings to mortgage still to pay, you might fully offset paying any interest at all (subject to individual lenders’ policies).
The current market conditions will also have its part to play if you’re going for an offset tracker mortgage, because this ultimately has a bearing on interest rates and mortgage deals in general. And offset mortgages can be more expensive because they come with added benefits and features too.
Which lenders offer them?
Barclays have been known to offer offset tracker currently on either a two or five-year deal. NatWest and Accord are still open to offset mortgages too.
It’s worth bearing in mind that each option comes with a fair amount of small print and should be studied carefully to make sure there are no hidden terms, which is something your broker can do for you.
Absolute Fab: I got a mortgage as an ex-bankrupt !!!
As an ex-bankrupt with a qualified Annulment I had to take several bridging loans to cover my debt. I found Online Mortgage Advisor who offered fantastic but specific insight to my issues. Within 6 weeks we exchanged contracts and I am now debt-free, and my house is safe.
They pulled out all the stops
Great staff and good communication. Helped us understand the process and gone over and above to help in a difficult situation. Other companies couldn't even be bothered but Thank you so much!
Anneke Woolley, 12 days ago
Our advisor was amazing from the start!
Aaron went above and beyond. He worked late and kept in contact with me and worked tirelessly to find me the best mortgage he could
James, 10 days ago
Rated 4.8 out of 5 stars across Trustpilot, Feefo and Google
Can you get an interest-only offset tracker mortgage?
Yes, this might be viable for the right kind of borrower, but there are risks involved, so you should always speak to a professional advisor before considering this option. Interest-only mortgages exist so you can benefit from lower monthly repayments, and if you’re offsetting that against any significant savings, and your tracker rate is good, you could end up with an attractive deal.
However, these mortgages are usually more expensive and harder to get hold of. You will need a repayment vehicle, might need a higher deposit and some lenders ask for a higher income requirement too, so it’s not without its challenges.
Speak to a broker who specialises in offset tracker mortgages
When it comes to complex home financing and specialist products like offset tracker mortgages, it is, without exception, always sensible to work with a broker who understands the economic updates and the effects on mortgages and borrowers.
It’s also crucial you find one who is experienced, impartial, is fully trained and has high credentials, as well as access to the entire market and exceptional industry contacts.
There are brokers in our network who specialise in offset tracker mortgages and arrange them every day, and we can match you up with the right advisor for you today. Contact us on 0808 189 2301 or make an online enquiry to get started.
Ask a quick question
We can help!
We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Tracker and Variable Mortgages
Ask us a question and we'll get the best expert to help
Get in touch today
Make an enquiry and we'll arrange for an experienced mortgage broker we work with to contact you straight away.