Current Account Mortgages
Requirements and attitudes towards mortgages are always changing and as a result mortgage companies create new products to cater for these needs. Current account mortgages are a relatively new product on the market that allows you greater flexibility than traditional mortgage types.
Current account mortgages are seen as a smarter and more efficient way of taking on a mortgage, however like with most products there are some downsides and considerations you need to be aware of.
With current account mortgages you can consolidate your mortgage, incomings, expenditure and loans in one flexible account.
How do current account mortgages work?
Current account mortgages are a way of borrowing money and managing your mortgage through a current account. In simple terms your current account acts and operates like a huge overdraft, and every time money is deposited into your account it reduces the actual amount of mortgage you owe.
Most lenders who offer this type of mortgage would normally require your regular monthly salaries to be tied to this current account.
Due to the nature of current account mortgages the flexibility allows you to pay off your mortgage over a shorter period of time and importantly allowing you make huge savings that you would have normally paid in interest.
Your current account operates virtually in the same way as a traditional current account; you would still receive regular facilities like a cash or credit card, paying in books, cheque books, online banking, statements etc.
Interest on the account is calculated on a daily basis which allows which has an impact on your interest payments.
Most current account mortgage providers will work with you to design a payment plan so you are able to track your mortgage and ensure you can pay it back over the repayment period you felt most comfortable with.
It is important to remember that any borrowings you intend to make are tied to your home, so if you fall behind or things go seriously wrong then you could face loose the roof over your head.
The pitfalls of current account mortgages
For those people who find it difficult to manage their finances this product could be quite challenging. With current account mortgages it is very easy to lose track of your spending and you could potentially end up with more debt than you started with.
Where can I apply for a current account mortgage?
To find the best current account mortgage deals please fill in our mortgage quote form below and we will put you in touch with our FSA regulated mortgage brokers..