Lloyds TSB Scotland Offset mortgage

Offsetting is a way of connecting the money in your savings and current accounts to your mortgage, so that you can reduce the amount of mortgage interest you pay. This can help you pay off your mortgage earlier, potentially saving you thousands of pounds.

In other words, the money you have helps to reduce the money you owe. Instead of paying interest on your whole mortgage, you only pay it on the difference between your mortgage and whatever is in your savings and current accounts. The end result is that you could be much better off – which is why so many people are choosing to offset.
The other great thing about offsetting is that it doesn’t change the way you manage your money. Your accounts stay separate and the money stays where it is, for you to use however and whenever you need it.

How does it work?

What are the benefits?

The chance to pay off your mortgage years early and so save thousands of pounds in mortgage interest is a huge benefit. But Lloyds TSB Offset offers plenty of other benefits as well.

It’s simple
We’ve made it simple for you to get the most out of offsetting. You can include any number of accounts in your offset arrangement, so you can carry on managing your money in the way that suits you best.

You’re in control
With Lloyds TSB Offset your accounts stay completely separate. You’ll still receive separate statements and, of course, you’ll still have access to your savings.

It is tax efficient
Normally, interest on savings is taxed. When you offset your savings against your mortgage, you don’t earn interest on your savings, so under current UK tax law and practice you don’t pay tax. This works out even better if you’re a higher rate taxpayer.

Family and Friends can help
With our Family and Friends option, other people close to you, such as your parents, can choose to offset the savings they have with us against your mortgage. Instead of them earning interest on their savings, you pay less interest on your mortgage. They keep complete control of their money at the same time as giving you a helping hand.

Overdraft advantages
With a Lloyds TSB current account running as part of your offsetting arrangement, you’re automatically entitled to at least a £1,000 overdraft, if you want one. You’ll get the same rate of interest on your overdraft as the rest of your mortgage. The advantage is that mortgage rates are lower than our standard overdraft rates.

View Lloyds TSB Offset important information.

How do I apply?

To apply for Lloyds TSB Offset simply make an appointment to see a Mortgage Adviser at any Lloyds TSB Scotland branch. They will explain everything you need to know and help you decide what’s right for you.

Even if you’re not an existing Lloyds TSB customer, you’ll find setting up Lloyds TSB Offset really straightforward. In fact, the sooner you make the appointment, the sooner you could be mortgage-free.

For your mortgage application please bring along the following documents:

• your last 2 years' Inland Revenue P60s or, if self-employed, 2 years' tax self-assessments,
• your last 3 months' pay slips, 
• your last 6 months' bank statements, 
• if you already have a mortgage, your last year's mortgage statements, 
• if you've been renting, your rent book, 
• if you're buying a property, the sales particulars.