UK Mortgages - Current Account Mortgages

Are you good with money?

If you are you good with money? - If you are then this is a great mortgage concept for you. Current account mortgages (CAM) combine your mortgage and your current account. Many lenders offer these types of mortgages, and they are becoming ever more popular. The Current account mortgage (CAM) has similar features to a flexible mortgage.

How does it work

• Your earnings are paid into your current account, any money left over at the end of the month, is taken off the mortgage.
• The Current Account Mortgage (CAM) can allow you to make overpayments & underpayments and even borrow back money.

Beware

Because your mortgage is combined with your current account your first statement will be in effect show a whopping overdraught probably larger than the price of the property, and of course you will be paying interest on that amount, although usually at a favourable rate. But because interest is calculated daily the interest you pay is reduced at as the mortgage is reduced.

For a slightly different variation of the Current Account Mortgage try the Offset Mortgage option.

Features of a Current Account Mortgage

• One account, combining your mortgage, loans, current account and savings
  
• Save money on your borrowing by combining your other accounts with your Mortgage

Current Account Mortgage Disadvantages

• Current Account Mortgages are only offered a variable rate and do not offer fixed, discounted or capped options.