An Offset Mortgage works by ‘offsetting’ a mortgage borrower’s savings against what they owe on their mortgage, which has the effect of reducing the overall amount of interest that they pay.
For example: A Borrower has a £100,000 mortgage and also has £20,000 in savings with the same banking institution.
With an offset mortgage the borrower will only pay interest on £80,000 which means they may be able to pay off their mortgage more quickly.
It is possible to link a child’s mortgage to their parents’ or other relatives’ savings. The savings can still be held in the parents’/relative’s name(s) and used by them in the normal way.