Accord Mortgages Products with Offset

A selection of our products offer a straight forward offset facility with up to 3 savings accounts linked to your client's mortgage. The savings are then offset against the mortgage so that your client doesn't earn savings interest, instead they benefit from paying reduced mortgage interest.

For example:

• Mortgage balance: £200,000
• Savings balance £15,000
• Interest paid on £185,000 (£200,000 - £15,000)

Designed to be simple

• We don't ask your client to open a current account or take out a credit card.
• We don't insist that salary credits are paid into the savings account.
• We don't ask for a minimum deposit to be paid into the savings account.

Offset Options

Your client can choose whether they want to benefit from a shorter term, potentially saving thousands in interest, reduced current payments or reduced payments in future years. Your client can switch between these three options as their circumstances change.

Features of the Offset savings account

• Postal savings account.
• Credits can be sent by cheque or direct to the account via BACS.
• Withdrawals are requested by posting a signed withdrawal slip and can be sent to the saver by cheque, or direct to a nominated bank account.
• No interest is earned on the savings, but the interest charged to the Accord borrower on the mortgage is calculated based on the difference between the offset mortgage balance and all the offset savings.
• Up to three savings accounts can be linked to the offset mortgage.
• Maximum balance allowed in the offset savings accounts in total is 100% of the offset mortgage balance.

Important Note:

The Offset Terms allow for the introduction of an Offset Plus facility under which family members and friends can open an Offset savings account linked to the mortgage. This facility has not been introduced and is therefore not available.

Charges and Fees (effective from 01 November 2009)

The following fees apply to the savings account transactions listed below:

• Stopped cheque - No charge
• Returned cheque - No charge
• CHAPS payment fee - £23.50
• Personal Information Request (Subject Access Request under the Data Protection Act) - £10

We open the Offset savings account(s) with Yorkshire Building Society, as a trustee of the savings account(s) on your client's behalf. Your client(s) will not be a member of, or have any membership rights in, Yorkshire Building Society.