We think applying different rates of interest to the money you borrow and the money you save is unfair. That's why we give you the option to link them together, reducing the amount of interest you pay on your mortgage, or increasing the interest you earn on your savings and current account.
We call the products in your offset plan 'jars' and, although they're connected, we show the balances separately, so you always know exactly where you are.
There are two ways you can choose to benefit:
Imagine, for example, you have a £100,000 repayment mortgage, charging you 6% interest. But, you also have an average of £1,000 in your current account during the month at 2% interest, and £10,000 in savings earning 4%.
Instead of earning interest on your current account and savings, you pay no interest at all on the first £11,000 of your mortgage.
You may have some money put aside, which you want to be able to access easily. By linking your savings to your mortgage you can earn the mortgage rate of interest on your savings, and still be able to get hold of your money when you need it.
