An offset mortgage links your savings, and in some cases your current account, to your mortgage. This means that instead of earning interest on your savings, you pay less interest on your mortgage. So, for example, if you have a mortgage of £125,000 and you have £25,000 in your linked accounts, then your monthly interest would be calculated on £100,000 instead of the balance of £125,000. This type of mortgage is only available when the savings account and mortgage account are with the same provider. Offsetting can be more financially advantageous to the borrower.