What is a Current Account Mortgage?
Current account mortgages are fairly new to the sector. They
are quite different to other types of mortgage as they enable you
to set off all your savings and debts in one single account.
Several lenders offer this type of flexible mortgage that is
linked to a current account, and is called a current account
mortgage. Your mortgage account and your bank account are merged
into one and you are issued with a check book and cash card just
as you would with an ordinary current account.
You pay your salary into the account and a proportion is
automatically used to meet your monthly mortgage repayment. You
can pay as much off your mortgage as and when you like, according
to monthly minimums set by the mortgage lender. You can also use
your savings to put against your mortgage, paying the mortgage
off more quickly and reducing interest payments.
A current account mortgage allows you to run a current account
against the mortgage allowing any money in the current account to
offset against the mortgage and reduce the overall interest you
pay on the loan. This in turn will reduce the mortgage term.
A current account mortgage is where you put most or all of
your financial commitments into one account. So your savings and
your income are paid into the one mortgage account and all your
debts are combined in the same account. It's not so much a
mortgage, more of a large overdraft that's secured on your
Current account mortgages work by turning your mortgage into a
large overdraft. They allow you to set off all the savings you
have against all the debts you that owe. You combine all your
debts with all of your income in a single current account. So
every time your salary is paid in, you reduce the amount of the
'overdraft'. Every time you take money out, the overdraft
increases. This means you can overpay and underpay without being
penalised for it.
The more savings and income you have in your account, the less
interest you will pay overall. Since the interest is calculated
on a daily basis, you will immediately benefit from any
overpayments you make.
At any time you can borrow back some or all of the money you
have managed to overpay on your mortgage. These mortgages are
ideal for those who are paid regular bonuses so consequently can
reduce the mortgage balance quickly.
The good thing about current account mortgages is that the
interest charges on all your borrowings are at a cheaper,
variable rate for mortgages instead of the more common credit
card rates. To compensate for this, rates on current account
mortgages, tend to be slightly higher than standard
You may freely reprint this article provided the author's
biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK
homeowners find the best available loans via the http://www.directonlineloans.co.uk
MORE RESOURCES updated Mon. October / 23 / 2017
4 ways to get the best mortgage refinance rateBankrate.comIf you can shave at least one-half of 1 percentage point off your current mortgage rate, it can be worth your while to trade in your existing home loan for a new one. Here are some tips for getting the very best refinance rate.and more »
Gotta Do It: Oct. 22 through Oct. 29The Herald-NewsElevator accessible in back of lodge. • Mortgage Refinance Seminars – 6 to 8 p.m., NuMark Credit Union, 951 E Lincoln Hwy., New Lenox. Free. For more information, call 815-729-3211 or visit www.numarkcu.org. • Bingo – 6:45 p.m., Knights of Columbus, ...
Kieber: What are your numbers? (column)Summit Daily NewsThat is how we are being tracked and the same is true when applying for a home mortgage refinance or a new home mortgage. When it comes time to start the process to obtain a new mortgage there are three numbers that I look at first: your credit score ...
Rising Home Values Can Boost Your Mortgage RefinanceHuffington PostRising mortgage rates are cutting the flow of mortgage refinances to a trickle. By now, many people who could have benefited from a lower rate have done so. However, if you're thinking about refinancing but are hesitating because of interest rates ...and more »
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to Kill You!
What if a banker or mortgage broker told you he's loan you
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How Good a Deal Is Your
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When you go to the bank to get a mortgage, you'll
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off which is good news for your family and the bank.
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Your Best Bet For Equity Buildup and Investment Real
Mortgage cycling is a system that relies on solid
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What is a Reverse
Simply stated, a reverse mortgage is a loan that enables
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Home Equity Loan
Information - How to Use One Wisely
Using a home equity loan to get out of debt or make
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What is the PayOption
Imagine an adjustable rate mortgage that allows you to pick
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Does Size Matter After All?
Hopefully your ego has never had to experience the words,
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New York Refinance -
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Are Biweekly Mortgages
You may have heard people, especially mortgage lenders,
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mortgage--and then offering to set up a biweekly plan for
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A Home Equity Loan - Is
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Home equity loans are often touted as being the solution to
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Mortgages - Which Loan
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Alternative Options For
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Home Equity Loan or Home
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