Offset mortgages

Everyday Islamic Finance Personal and Family Finance
#1

I’m in a situation where we need to buy larger home. I will need to sell my current home (mortgage free) and take out a loan from the bank to buyer the house.

I have being offered a offset mortgage. Where we can use our saving or savings of family members to cancel out the interest portion of the loan. It is possible to cancel out 100% of the interest of the loan and just pay the capital amount borrowed. Would this be considered shariah compliant?

#2

May Allah bless you.
Even if you can keep the level of savings to a point where you can offset the interest and reduce it to zero, scholars will still see it as impermissible to enter into a contract where the agreement is based on repaying the loan with interest.

Kind regards