An Offset Mortgage works by ‘offsetting’ a mortgage borrower’s savings against what they owe on their mortgage, therefore reducing the overall amount of interest that they pay.
For example: A Borrower has a £100,000 mortgage
+ £20,000 in savings with the same banking institution
With an offset the borrower only pays interest on the £80,000 difference, which means that the borrower 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 are accessible to them in the usual way.