Offset Mortgage Terms & Conditions

Please note: this product is no longer available. The details below are for existing Offset Mortgage account holders only.

Offset interest adjustments

At no time will any interest be paid on the Savings element of the Offset Account, irrespective of the balance.

An interest credit will be applied at the close of business on the last working day of each month to the Mortgage element of the Offset Account. This interest credit will be calculated on a daily basis and will be equivalent to the interest charged on the proportion of the loan outstanding that is equal to the balance in the Savings element of the Offset Account.  However, if on any day the amount invested in the Savings element exceeds 50% of the mortgage balance, no interest credit will be applied in respect of the excess.

The interest credit will be applied in any month in which the Savings element has a credit balance, unless the Mortgage is redeemed in that month, in which case there will be no such interest credit.

The credit will be applied to the sub-account of the Mortgage element of the Offset Account that has the highest balance at the time of the advance. In the event of full repayment of this sub-account, or if the credit would result in the sub-account having a credit balance, the credit will be applied to the sub-account that has the highest balance at that time.

Calculation of the minimum monthly payment of the Offset Mortgage

The minimum monthly payment which you are required to make will be calculated on the balance outstanding on the Mortgage element of the Offset Account without any adjustment for any credit balance held in the Savings element.

Savings Element of the Offset Account

The Savings element of the Offset Account will not be opened until the Mortgage has been completed and can only be linked to the Mortgage element of the same Offset Account.

The Savings element of the Offset Account must be in the same name(s) as the Mortgage element and, in the case of a joint Offset Account, both elements must have the names in the same order. Both elements must have the same address for correspondence.

In the event of any borrower ceasing to be a party to the mortgage or a new party being added, the Savings element of the Offset Account must be closed, in which case there will be no interest offset to the Mortgage element until a new Savings element has been opened in the name(s) of the remaining and any new party to the Offset Account.

Termination of the Offset Interest Credit

If there is any breach of the Mortgage Conditions or the terms of the Mortgage Offer, or of the terms and conditions relating to the Savings element of the Offset Account, the Society can, on giving reasonable notice, terminate the interest credit and, at its discretion, charge interest on the Mortgage element at the Society’s Standard Variable Rate.

Statements for your Offset Account

Following the end of the Society’s financial year on 31 December, you will be provided with a statement for the year showing the transactions on the Mortgage element of your Offset Account. Transactions on both elements can also be accessed via our Online service.

Further borrowing on your Offset Account

You will not be able to increase the amount borrowed on the mortgage element of your Offset Account, but the Society will consider further advance applications on other products.

Closure of the Savings Element of the Offset Account

The Society can close the Savings element of the Offset Account at any time and without notice, repay any credit balance to you or, at our discretion, transfer the balance to a Market Harborough Building Society easy access savings account, in any of the following circumstances:

a)  If you, or in the case of joint account holders, any of you, ask us to do so,

b)  If the advance and all other monies owed on the mortgage account have been repaid,

c)  If the borrowers on the Mortgage element of the Offset Account are different from the persons named on the Savings element, or are in a different order,

d)  If there is any change in the Law, or to any Code of Practice, or to HM Revenue & Customs practice or interpretation, or in the requirements of the Financial Conduct Authority or any other regulatory body, or there is a decision of any Ombudsman, as a result of which the Society is required to deduct or account for Income Tax in relation to the Savings element of the Offset Account, or

e)  If for any other reason the Society is prohibited from offering or continuing to offer the Offset Account’s offset facility.

Savings Element of the Offset Account – Terms and Conditions

Please read the General Savings Account Terms and Conditions before applying.

If any term or condition in this document differs from the Society’s general Mortgage Terms and Conditions, the terms and conditions in this document will prevail.