Ready, “Offset”, Go!

Over the last 12 years Liquid has constantly been asked by Expats for Offset Mortgages as they were popular and familiar to them from their time in the UK using banks such as First Direct and Clydesdale Bank to take advantage of the benefits of an Offset Mortgage. Liquid Expat has consistently lobbied lenders to accommodate accepting expat applications and are delighted that we can finally say “Welcome to the very first Offset Mortgage for Expats for BTL Mortgages for BTL purchases and BTL Remortgages.”


Liquid Expat Mortgages already has the largest panel of lenders for UK Expat Mortgages and over the last 12 years has either lent, facilitated or brokered billions of pounds in mortgages to Expats worldwide but this is the 1st Offset Mortgage that is available to certain expats and foreign buyers. Expats typically have larger bonuses and higher salaries when compared to similar jobs in the UK and when you factor in that expats typically pay less tax than their UK counterparts, it’s inevitable that greater savings and cash liquidity will allow an offset mortgage to reduce the interest paid on a UK mortgage buy to let debt.

What’s more there is added attraction owing to the flexibility which allows the “surplus” capital for other investment opportunities such as;

  • Achieving higher rental investment returns on their UK property rental portfolio
  • Opportunities to capitalize on Foreign Exchange (FX) movements by purchasing favourable currency and sending the capital to the UK to further offset the UK mortgage debt without using existing savings or capital.
  • The flexibility to lock in favourable and historically low UK mortgage interest rates saving valuable time and money waiting for a remortgage on which interest is immediately payable on the capital released from a UK property.

In essence the more you “save”, the less interest you pay on your mortgage and what’s more you have greater control and flexibility in how you use your money than you would have with a standard mortgage.

How does an Offset Mortgage work in reality? Well let’s say your mortgage balance is £200,000 and you have £75,000 in your linked current and savings accounts, the monthly mortgage interest would be charged on £125,000 instead of the full mortgage balance of £200,000. That’s an immediate win for the Offset Mortgage customer. If you had a balance of £200,000 with a typical rate of 3.5% interest your annual interest amount would be £7,000. By using an Offset Mortgage savings held in the UK offset account of £75,000 would mean you’d only be paying £4,375 in interest making an annual saving of £2,625 in interest payments. You can withdraw any of the £75,000 balance and pay interest on the remaining offset mortgage balance. As well as withdrawing the balance there is the added flexibility of adding to your savings which can then be used at a later date to fund a further investment opportunity or saving for a rainy day. You can access these savings quickly and easily in the same way you would a current account as you have funds available. By paying down your mortgage through savings there is also the peace of mind and protection that funds are readily available should it not be possible to remortgage at some stage in the future owing to a change in circumstances.

Liquid is delighted that lenders have listened to what our customers want from a UK Expat Mortgage. This is an ideal product for expats/foreign nationals to consider if they have surplus rental income in the UK to offset their mortgage payments, or they receive bonuses to reduce interest payments or have savings that currently aren’t receiving a decent rate of interest but can be used to offset the mortgage balance whilst retaining the flexibility to use the monies for other purposes at a future date. To find out more contact Liquid now +44 (0)161 871 1216 or email

Disclaimer: This material is for information purposes only and does not constitute financial advice or an insurance recommendation. The information given in this page is subject to change, and Liquid Expat Mortgages may not be held liable for the information or opinions expressed. The FCA does not regulate some investment mortgage contracts. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured against it. Please note that not all the providers or specialist licensed advisors we will introduce your case to for Personal Insurance are covered by UK regulation.

Please ensure tax advice is undertaken if you moving or transferring money between countries as sovereign / local laws may apply.

Liquid Expat and Liquid Expat Mortgages are the trading styles of Liquid Complete Limited who is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 685425,

Company Registration Number 09438556. Registered Office: James House, Ripponden Road, Oldham, Lancashire  OL4 2NY UK

Liquid Expat Trading Address:

1st Floor, 4 Broadgate, Oldham Broadway Business Park

Chadderton, Oldham OL9 9XA United Kingdom