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How offset can beat the saving rates upset

Offset mortgages can beat the saving rates upset according to HRBS

With UK instant access savings rates struggling to get above 1.1 per cent after this summer’s Bank of England’s base rate cut, a calculation by This is Money caught my eye.

A borrower with a £100,000 mortgage and £30,000 in savings would be £4,977 better off if they had an offset mortgage, compared to putting the cash in an average instant access savings account.

  • Plus, they would pay off the mortgage six months earlier.
  • And they would retain the flexibility of being able to access their savings when needed.

For those borrowers with savings but who wish to retain easy access to them, offsetting is very much an option to be explored.

Needless to say, Hinckley & Rugby has provided offset mortgages for many years.

Hinckley & Rugby Building Society chief executive Chris White (who has an offset mortgage).

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