Offset Plus for borrowers

How Offset Plus works

A helping hand with your Offset mortgage

With our standard Offset accounts you can offset your savings against your mortgage to save yourself money. Offset Plus simply means that as well as your own savings, the savings of family and friends can also be linked to your mortgage - meaning that they can give you a helping hand when it's needed. They link their savings to your mortgage by opening an Offset Plus savings account.

Your family and friends retain control over their savings because they haven't given the money to you. Your mortgage and the Offset Plus savings will always remain in separate accounts but the savings accounts are linked to the mortgage. Therefore, when we calculate the mortgage interest you owe, you get the benefit of a higher total savings balance offset against your mortgage.

You must hold at least one Offset savings account in your name and can have a maximum of three savings accounts linked to an Offset mortgage. Up to two of these accounts can be Offset Plus savings accounts.

You'll be able to see the total benefit you're getting from all the combined savings linked to your mortgage, on your annual mortgage statement, as well as individual linked savings balances through our website.

The impact on your mortgage

Although you get the benefit of the additional savings helping you with your mortgage, these won't make any difference to the amount we will lend you nor should you rely on them being there - the saver can withdraw them at any time.

Because you'll need to consider the impact on your mortgage if the Offset savings balance changes, you should contact us if there is a significant change in the overall balance of savings accounts linked to your mortgage.

We will disclose relevant information to an Offset Plus saver. This may be done where there are any changes in circumstances that may affect their interests. Full details are included on the application/consent form.

Payment Options

You can set up your account in three different ways to achieve your own desired outcome. Choose whether you want to benefit from a shorter term, reduced current payments or reduced payments in future years.

And remember, you don’t have to stick to one option for the whole term of your mortgage; you can change between the options if your circumstances change. Just contact us when you want to discuss or arrange a different option.

The three options are:

For further details please refer to our comprehensive guide, A guide to your Offset Options.

Whichever option you choose, should your savings balance or interest rate change, or if there are any other significant changes to your mortgage you should contact us to reassess your options and to ensure your monthly payment is sufficient to achieve your desired outcome.

Linked savings

It's important to stress that anyone who offers to link their savings to your mortgage with Offset Plus won't actually get any financial benefit from the arrangement.

The incentive for the saver is that they are helping you by increasing the offsetting benefit, without giving away their money.

As the saver won't earn any interest on their savings they won't pay any tax on them. In this way, the offsetting benefit received by the borrower is greater than the benefit a taxpaying saver would have received if they had put their savings into a typical savings account.

They also have total control over their savings at all times and can deposit into, withdraw from or close the account as they wish - although you'll get more benefit if the savings balance remains constant or increases. You don't get any access to their accounts - the monies are in totally separate accounts, they are simply linked to your mortgage.

How to apply for Offset Plus

To set up Offset Plus, you first of all need to have an Offset mortgage with us. You then need to explain to your family or friends how you'd like them to help. If they have access to the internet, you could refer them to Offset Plus for savers - a section of our web site which contains information about Offset Plus savings account.

If they're interested, you will need to visit your local branch or contact us and request an Offset Plus information pack, which includes an Offset Plus savings account application form. You'll need to fill in your details and sign this form once your mortgage has completed, so that we know it's your mortgage they want to link their savings to. The saver will have to meet our usual account opening requirements as detailed in the information pack.

If you're an existing Chelsea Building Society Offset customer, we'll need to set the arrangement up on your account - just visit your local branch or contact us for more details.