1. What is Nationwide Offset Mortgage?

Nationwide Offset Mortgage is a financial product that links your mortgage to your savings account. The savings balance is offset against your mortgage debt, reducing the interest you pay while maintaining access to your savings.

2. How Does the Calculator Work?

The calculator uses the Nationwide offset mortgage formula:

Where:

• \( Loan \) — Total mortgage loan amount ($)
• \( Savings \) — Savings amount offset against the mortgage ($)
• \( Rate \) — Annual interest rate (%)

Explanation: The formula calculates the interest payable on the net mortgage amount after offsetting your savings balance.

3. Benefits of Offset Mortgage

Details: Offset mortgages can significantly reduce interest payments, shorten mortgage terms, and provide flexibility while keeping savings accessible for emergencies.

4. Using the Calculator

Tips: Enter your total mortgage loan amount, savings balance to be offset, and the annual interest rate. All values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does offset mortgage differ from regular mortgage?
A: Offset mortgage links your savings to your mortgage, reducing the interest calculation base while keeping savings accessible.

Q2: Are there any tax implications?
A: Since you're not earning interest on your savings, you may pay less tax compared to traditional savings accounts.

Q3: Can I access my savings anytime?
A: Yes, one of the main benefits is that your savings remain accessible while reducing your mortgage interest.

Q4: What happens if my savings exceed my mortgage?
A: Typically, you won't pay any interest, and some lenders may even pay you interest on the excess amount.

Q5: Is offset mortgage suitable for everyone?
A: It's best for those with significant savings who want to reduce mortgage interest while maintaining liquidity.