Overview
- Clydesdale Bank, part of Virgin Money, has withdrawn all offset rates for new customers, replacing them with standard discounted variable deals.
- The retreat leaves only a handful of providers still offering offsets, including Barclays, Handelsbanken, Coventry and Yorkshire building societies, and Coutts.
- Offset borrowing remains a sliver of the UK market, with just 0.6% of new mortgages in July—565 loans—structured this way.
- Brokers say offsets are less profitable and more complex to run, with post‑2008 capital rules reinforcing lenders’ preference for mainstream fixed‑rate products.
- For suitable borrowers, offsets can deliver tax‑efficient interest savings with easy access to cash, though rates are typically higher and deposits of around 20% or more are common.