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Reduce the term of my mortgage

Intelligent Finance gives you a choice of how you’d like to take the benefits of an offset mortgage.

Choosing to minimise the amount of interest you pay and using our Shorter Term option to receive the benefits of an Intelligent Finance offset mortgage could be just the thing for you.

Here’s how it works:

• You offset the money in your Intelligent Finance Savings/Current Account and/or Intelligent Finance ISA against your Intelligent Finance mortgage, which means you pay less interest on your mortgage. Note that you earn no interest on the money in your Savings/Current Account
• The interest you save does not go towards reducing your monthly mortgage payments, so you’re effectively overpaying each month
• This means the mortgage balance reduces faster, which means you could pay off your mortgage early.

Is it suitable for me?

This Shorter Term option is ideal for you if you would like to pay off your mortgage early so that you can be mortgage-free to do other things, such as start a new business, help your children through university or retire early. It could also be a good option if you're planning to reduce the impact of a shortfall in a savings plan on an interest-only mortgage. And don't forget that you can switch to one of our other mortgage payment options whenever you like.

How does it work on a repayment mortgage?

Your Savings, Current Account and ISAs can all offset against your mortgage, reducing the amount of your mortgage on which interest is paid. As your payments are not affected by offsetting, you are effectively overpaying each month. This means you could end up paying your mortgage off early.

How does it work on an interest-only mortgage?

If you choose an interest-only mortgage, it's important to note that the level of savings you offset may have to be higher than if you had chosen a repayment mortgage, if you want to pay your mortgage off early. The most likely benefit of Shorter Term for interest-only mortgages is a reduced final mortgage balance. This means that the repayment plan you have in place to pay off your mortgage may not have to reach the level you had originally expected.

Now try the to see how much you could reduce the term of your mortgage.

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