Current account mortgages are a type of flexible mortgage that combines several financial products into a single account.

Current account mortgages are secured against the borrower’s home and will act as both a home loan and a current account.

It can also be combined with credit cards, personal loans, and cheque book facilities in order to streamline the borrower’s banking facilities.

Current account mortgages are a type of flexible Mortgage and may therefore offer features such as:

• Overpayments
• Underpayments
• Drawdown of overpayments made
• Additional borrowing facilities
• No (or low) redemption penalties

In addition to flexibility, current account Mortgages can help borrowers save interest and pay off their home sooner. This is due to a combination of factors such as:

• Earnings being paid directly into the mortgage
• Daily interest rate calculations
• No high interest loans (e.g. credit cards)

However it is important for the borrower to remain disciplined as excessive withdrawals will increase the overall cost and term of the mortgage.