Passbook and Online Offset Share Terms

Summary Box Key Product Information for our Savings Account(s)
Account Name	Offset Share (passbook)
Interest Rates (AERs)	n/a
Tax Status	n/a
Conditions for Bonus Payment	n/a
Withdrawal Arrangements	Instant access
Access	Branch, agency or post

 

Summary Box Key Product Information for our Savings Account(s)
Account Name	Online Offset Share
Interest Rates (AERs)	n/a
Tax Status	n/a
Conditions for Bonus Payment	n/a
Withdrawal Arrangements	No notice or loss of interest. Maximum £10,000 per day
Access	Online

A passbook Offset Share and an online Offset Share are the only savings accounts which can be linked to a mortgage. An Offset Share can only be linked to one mortgage

The mortgage will be linked with an Offset Share to reduce the amount of interest charged on the mortgage. Mortgage interest will be calculated on the daily difference between the mortgage balance and the share account balance

Whilst an Offset Share account can be opened and maintained with a nil balance, you can invest and maintain up to 20% of the current balance of your mortgage to a maximum of £250,000

Your monthly mortgage repayments will not be adjusted either up or down as a result of the amount held in an Offset Share account linked to your mortgage

You will not earn any interest on any balance in the Offset Share account as any investment up to the maximum limits permitted is being used to reduce the amount of interest charged on your mortgage

Your account will be opened upon completion of your mortgage and a passbook will be issued unless you have opted for the Online Offset Share. Alternatively, you can request to open an Offset Share after completion has taken place

Subject to any future changes in legislation by the Inland Revenue, as you will not be receiving interest on your Offset Share account, you will not be liable to Income Tax on your Offset Share account

You may make withdrawals from the Offset Share without notice or penalty, subject to branch, agency or online limits

For the passbook account, the passbook will be your transaction record. For the online option, there will be no passbook and no paper statement.

For the online option, your account will be opened online and once open you will have easy access to your savings 24/7 which will allow you to:

Transfer funds between your online savings and your external nominated bank/building society account

Check your balance or transactions

View any other account balances that you may have including a mortgage account

View and print online statements - paper statements will not be issued for this account

Check the current interest rate on your account whilst logged in

Change personal details

When you withdraw funds, interest is calculated up to the day prior to the withdrawal being made for the purpose of calculating the daily difference between the mortgage balance and the Offset Share account balance

If upon redemption of the mortgage we have not received any instructions to either transfer the Offset Share or to close the account, the account will be transferred to our Instant Access Share account

We do not assume the responsibility to notify you if the Offset Share account balance exceeds your mortgage balance and you are not receiving any real benefit

The account will be operated under these Offset Share terms, together with our general investment terms and conditions. If there is any conflict between the specific Offset Share terms and our general investment terms, the Offset Share terms take precedence.