![]() |
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 house. 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 mortgages. 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 website.
Today's Mortgage and Refinance Rates: March 19, 2023 | Rates Could Drop Further if SVB Run Causes Fed Pivot Business Insider Today's best mortgage deal? 15-year rates are the lowest available at 5.49% | March 17, 2023 Fox Business Refinancing your mortgage could save you thousands — here are some of the best refinance lenders CNBC Today's Mortgage, Refinance Rates: March 18, 2023 | SVB Collapse ... Business Insider Today's refinance rates move lower : March 9, 2023 Bankrate.com Today's Mortgage and Refinance Rates: February 26, 2023 | As ... Business Insider Renegotiate, refinance or request a delay: what to do if you’re struggling to pay your mortgage The Guardian Move 2300 Aussies are making every day news.com.au Mortgage Rates Today, Feb. 18, & Rate Forecast For Next Week The Mortgage Reports Hutchins Roundup: Worker migration, mortgage access disparities, and more Brookings Institution Is Refinancing an Auto Loan Worth It? Yahoo Finance Payday Loans Online: Same Day Approval Options Explored Kansas City Star Justice Department and Consumer Financial Protection Bureau File ... Department of Justice SRC signs deal with Alrajhi to refinance $1.3bn of real estate ... Construction Week Online What is a home appraisal? Everything you need to know Yahoo Finance HUD outlines its reverse mortgage priorities in budget proposal ReverseMortgageDaily Mortgage Refinance Rates SFGATE CFPB Launches Effort to Spur New Opportunities for Homeowners ... Consumer Financial Protection Bureau Is mortgage refinancing worth it? CBS News Today’s 30-year mortgage refinance rates hit lowest levels in 15 days | Oct. 28, 2022 - Fox Business Today’s mortgage refinance rates: Look to shorter repayment terms for maximum savings | September 13, 2022 Fox Business Today's Mortgage, Refinance Rates: March 10, 2023 | Rates up for ... Business Insider Analysis | It Will Pay to Wait to Refinance Your UK Mortgage The Washington Post VA Refinance Rates - Current VA Loan Refinance Rates Today Business Insider Today's refinance rates drop off | November 11, 2022 Bankrate.com Mortgage refinancing dries up Fox Business Trends in Mortgage Refinancing Activity Freddie Mac Refinance Closing: An Overview Zing! Blog by Quicken Loans Small Business Loan Refinance Bankrate.com Current 15-Year Refinance Rates Today Business Insider Refinance Rates, Dec. 13 | Rates falling today The Mortgage Reports Heloc vs. Cash Out Refinance Credible Mortgage Giant Rocket Plunges Back to Earth, Hit by Rising Rates The Wall Street Journal Can You Refinance a Reverse Mortgage? Investopedia When to Refinance Your Mortgage (and When You Shouldn't) Business Insider When Should You Refinance an Adjustable-Rate Mortgage ... U.S News & World Report Money Refinance Rates, Jan. 6 | Rates falling today The Mortgage Reports Mortgage Rate Buydowns Are Back Bankrate.com 10 Tips For Refinancing Your Mortgage Zing! Blog by Quicken Loans
|