In this brief guide, we will discuss the Halifax offset mortgage.

Does Halifax offer an offset mortgage?

No, at the time of writing Halifax does not currently offer an offset mortgage. We would write the rest of this blog as if Halifax has an offset mortgage so we can define what it would look like.

What is the Halifax offset mortgage?

A Halifax offset mortgage is a mortgage where your savings are used to reduce the amount of interest you pay on your mortgage.

A Halifax offset mortgage works by linking your Halifax savings account to your Halifax offset mortgage.

How does an offset mortgage work?

Interest is charged on the difference between your mortgage capital balance and the amount in the offset savings account. The more you deposit in a savings account, the less interest you have to pay. You can withdraw the funds from your savings account at any time as there is no lock-in period. Withdrawing money from your offset savings account will, of course, increase your interest payments.

The funds in the linked account can be deposited by friends of family.

A Halifax offset mortgage can help you;

  • Pay your mortgage off quicker
  • Reduce your monthly payments now or in the future

Is a Halifax offset mortgage right for you?

It is worth getting mortgage advice before choosing a Halifax offset mortgage from a qualified digital mortgage broker.

Is an offset mortgage worth it?

Yes, an offset mortgage may be worth it if you are able to put enough savings into your linked savings account and essentially reduce how much interest you pay on your mortgage and how quickly you pay off your mortgage.

Can you still get offset mortgages?

Yes, you can still get offset mortgages. Some UK mortgage lenders still offer these types of mortgages.

Can you withdraw money from an offset account?

Yes, you can withdraw money from an offset account but it will likely increase the interest you are paying on your mortgage. This depends on when you withdraw the money and if you put it back into the account.

Using a mortgage broker

You may want to consider using an independent mortgage broker to get a mortgage.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases. This could be over 11,000 mortgage products. 

This may have some advantages than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your  mortgage with the help of a conveyancer. 

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it, they will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

Offset mortgage calculator

If you want to see how much you could get with an offset mortgage then using an offset mortgage calculator may be of help.

In this brief guide, we discussed the Halifax offset mortgage. If you have any questions or comments please let me know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.