Current account mortgages combine a fully flexible mortgage with a current account.
With hundreds of deals available across the UK through dozens of lenders, finding the right deal can be difficult. Independent Mortgages Direct NE has access to the whole of the market - every lender and mortgage provider. Our free and impartial service can save you time, hassle and money on your current account mortgage.
What is a current account mortgage?
Current account mortgages allow you to channel all of your finances (your mortgage, savings, loans and current account) into one single account. At the end of every month any money left on the balance goes towards paying off the mortgage. Interest is only charged on the outstanding amount, reducing your interest payments overall. Usually the current account mortgage lender will draw up a plan with you to decide on the minimum amount that should pay each month. If you leave more in your account each month, you will pay less interest and pay off your loan quicker.
Is a current account mortgage right for you?
A current account mortgage isn’t right for everyone. If you can regularly leave more than the agreed amount in your account at the end of every month, it can be a very useful deal. It’s worth considering the following points before making a decision:
- If you are a high rate taxpayer or have a large amount of savings, then this could be the right choice for you
- It offers all the benefits of a flexible mortgage
- Gives you greater control of mortgage repayments
- The lender will usually require that you pay your monthly salary directly into the CAM
- Interest is calculated on a daily basis
- Due to increased risk, generally higher interest rate than fixed or variable rate deals
- This rate type requires a measure of financial self-discipline
Call us on 0800 0350095 for a FREE consultation with one of our friendly and experienced team. We are happy to discuss your situation and help you choose the best option for you.