Offset Mortgages | Chelsea Building Society
Products for existing customers are still available.
Is an Offset mortgage right for me?
- If you have savings, you can make the most of them by simply linking them to your mortgage.
- Rather than earning interest on your savings you reduce the amount of interest you pay on your mortgage.
- This means you can reduce the length of time it takes to repay your mortgage or you could lower your monthly payments now or in the future.
- You will still have the flexibility to access your savings to deposit more or make withdrawals but doing so will change how much you could save on mortgage payments or the time it takes to repay your loan.
- You have the option to either fix the interest rate on your offset mortgage for a set time or for your interest rate to track the Bank of England Base Rate for a specified period of time.
Protecting your money: Deposits in the savings element of your Offset mortgage are covered by the Financial Services Compensation Scheme (FSCS), up to a total of £85,000 of the total deposits held with the following: Yorkshire Building Society, Barnsley Building Society, Chelsea Building Society, Norwich & Peterborough Building Society and Egg. Please refer to the FSCS information sheet or here for more information.
If Chelsea Building Society were to fail, funds held in an Offset savings account would not be offset against the linked Offset mortgage account. This means the mortgage balance would remain separate and would not be reduced by the savings balance.
The first £85,000 (per person) held in the Offset savings account would be covered by the Financial Services Compensation Scheme (FSCS). The £85,000 limit is for all deposits which a person holds with Chelsea Building Society, so any other savings accounts would need to be taken into account. As with any savings account, funds not covered by the FSCS would need to be claimed through any insolvency proceedings.
Other types of mortgage
Fixed rate
Fix your interest rate, so it won't change over a set period of time, regardless of what is happening to interest rates elsewhere.
Tracker
Mortgages that follow the Bank of England Base Rate - you could save money while the Base Rate remains low but your payments could also go up.
Want to know more?
The diagram below might help explain how offset mortgages work in conjunction with your savings.
