There has been a decline in providers offering offset mortgages in recent years, with Clydesdale Bank, a part of Virgin Money, the latest to remove their rates from the market.

An offset mortgage essentially links your savings account, or in some cases your current account, to your mortgage with the same bank.

When you make a payment on your mortgage, the amount is “offset” by the balance of your savings account, and the interest is calculated on the difference between the two.

For example, if you had a £300,000 mortgage and £30,000 in your linked savings account, you would only pay interest on £270,000 of the mortgage.

Whilst it can save homeowners thousands in interest, rates are generally higher as the market is limited and most providers look for a deposit of 20 per cent or hi

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