I was wondering if offset mortgages are haram or halal. This is where the bank that gives you a mortgage will reduce your mortgage balance on which they charge interest by the amount in your savings account.
E.g. I have £100k in a Barclays savings account and I take out a £100k Barclays mortgage. They would not charge me any interest on this basis.
Some lenders will allow you to offset family members’ savings too. E.g. I take out a £300k mortgage with Natwest and my parents have £300k in savings with Natwest, I would not be charged any interest.
I presume this falls foul on the basis that there’s this condition involved but would appreciate your thoughts.
JazakAllah khair