Offset Plus for savers

How Offset Plus works

You may already be aware that with our Offset accounts, borrowers offset their savings against their mortgage to save themselves money. They have the option of linking their offset savings to their mortgage to reduce their monthly mortgage payment immediately or in the future. Alternatively, they can use their Offset savings to possibly pay off their mortgage more quickly.

Offset Plus simply means that the savings of family and friends can also be linked to the mortgage. It allows you to help your relative or friend yet retain total control and ownership of your savings. As your savings are linked to the borrower's mortgage, when we calculate the mortgage interest they owe, your savings are taken into account and the benefit they get from offsetting is increased.

It's important to stress that by linking your savings to a borrower's Offset mortgage you won't personally get any financial benefit from the arrangement as you won't earn any interest on your savings. The incentive for you is the knowledge that you are improving the borrower's financial situation.

Key features

A maximum of three savings accounts can be linked to an Offset mortgage. The borrower must have at least one Offset savings account linked to their mortgage. This means that up to a maximum of two Offset Plus savings accounts are available for family and friends.

Savings accounts features:

• A choice of sole or joint name accounts (maximum of two account holders). An Offset Plus savings account cannot be held jointly with the borrower.
• No minimum operating balance (although the account cannot be overdrawn).
• All our Offset Plus savings accounts are passbook accounts.
• Unlimited deposits subject to a maximum holding of £1 million at any of our branches.
• The ability to set up standing orders to make regular payments into your account.
• From our Chelsea branches you can withdraw cash up to £1,000 on any one day or up to £5,000 by giving a few days' notice, subject to a maximum amount of £5,000 in any seven day period on production of your passbook. You can withdraw an unlimited amount by cheque without notice on production of your passbook. Proof of identity may also be required when using your passbook at any branch other than your local branch.

How much should I save?

Although you have total control over and access to your savings and are able to remove them at any time, the Offset Plus savings account is not intended to be a day-to-day account. Even though the borrower knows not to rely on your savings in order to pay their mortgage, ideally for them to benefit from the arrangement, the savings balance should remain constant or increase and withdrawals should be infrequent.

Because the borrower will need to consider the impact on their mortgage payment if the Offset savings balance changes significantly, it's helpful if you let them know if there is or is going to be a significant change in the overall balance of your Offset Plus savings account(s) linked to their Offset mortgage.

If at any time the total savings exceed the mortgage balance, because the excess savings will not be generating any offsetting benefit and Offset and Offset Plus savings accounts don't earn any interest, it is therefore not in the saver's or borrower's financial interest to have Offset savings invested in excess of the mortgage balance. Therefore you should discuss with the borrower what Offset Plus savings balance will work best for both of you.

We will disclose other relevant information to the borrower which may affect their financial interests. Full details are included on the application form, which you must sign.

Other Offset Plus terms

There are other terms that apply to your Offset Plus savings account in addition to the terms contained on the pages of this section. It is important that you read these before opening an account. A full set of terms and conditions will be issued with your application form.

Terms

It is important that you read the Terms and Conditions relating to this account before applying. These terms apply to your Offset Plus savings account in addition to the terms contained on other pages of this section. A full set of terms and conditions will be issued with your application form.

Proof of identity

Under regulations for the prevention of financial crime, we have a responsibility to verify the identity of each applicant before opening a new account, even existing customers. To do this, we use an electronic verification system.

However, in certain cases, for example if you are not listed on the electoral roll or you have recently moved house, we may need further proof of your identity. For postal applications, this will mean returning your application and for applications in person this will mean we are unable to open your account immediately unless you have proof of your identity with you. Therefore, you may wish to provide additional proof of your identity with your application.

Examples of additional forms of identification that we can accept are shown below.

Proof of name:

• passport
• full driving licence
• original and current notice of tax coding from HM Revenue & Customs.

Proof of address:

• an original utility bill, e.g. gas, electricity, telephone (not mobile phone) less than 3 months old
• an original and current council tax bill
• an original bank or building society statement less than 3 months old.

To find out which other forms of identification are acceptable, please refer to our accepted documents.

If you wish to provide proof of your identity with your application, you should supply one document from each of the lists above. A third item, which can be chosen from either list, will be required if you are applying by post. For security reasons, please do not send an original passport or driving licence through the post. Instead you can send copies of these documents, which should be certified by a solicitor.

How to apply for Offset Plus

If you are an individual resident in the UK and are interested in opening an Offset Plus savings account linked to the mortgage of a relative or friend, you will need to complete an application form. This is available on request within an Offset Plus information pack. The borrower will also need to fill in their details and sign this application form, so that we know which mortgage account to link your Offset Plus savings to.

Then just visit any one of our branches or send your application to us if it's more convenient.

To open an account, you'll need:

• Your opening deposit. Cheques should be made payable to yourself or to 'Chelsea Building Society a/c (your name)'.
• If you already hold a Chelsea Building Society account, your existing account number.

If you open an Offset Plus savings account and then change your mind within 14 days we will help you switch to another of our accounts or give you your money back. We will not apply any notice period or charge. Should you wish to cancel the account within this period, please write to the branch where you opened your account or call 0345 744 6622.