How an Offset Account Can Save You Thousands on Your Home Loan

An offset account is a type of savings account linked to your home loan. The balance in your offset account is subtracted from your outstanding loan balance when calculating interest, meaning you only pay interest on the reduced amount. This simple but effective strategy can save you thousands of pounds over the life of your mortgage.

In this article, we’ll explain exactly how an offset account works and how you can use it to reduce your interest costs and pay off your home loan faster. We’ll also explore the benefits of using an offset account compared to other options like redraw facilities.

Using an offset account is especially effective for those who can maintain a healthy balance in their savings. If you’re able to deposit regular income or bonuses into the account, you’ll reduce the overall interest payable on your loan, without locking your funds away as you would with a term deposit.

Speak with a broker today to explore how an offset account can benefit your home loan.