| A current account mortgage is a type of flexible | | | | which can further assist the borrower with managing |
| mortgage product that combines several financial | | | | their personal finances. |
| products into one single account. | | | | Because a current account mortgage is a type of |
| As with any other mortgage product, a current | | | | flexible mortgage it can offer features such as |
| account mortgage will be secured against the | | | | overpayments, underpayments, drawdown of |
| borrower's home. Current account mortgages are not | | | | overpayments previously made, additional borrowing |
| usually secured against investment properties. | | | | facilities, no (or low) redemption penalties. |
| The main difference between a current account | | | | In addition to flexibility, a current account mortgage can |
| mortgage and a standard mortgage product is that the | | | | help the borrower save interest and pay off their |
| current account mortgage will act as both the | | | | home sooner. This is due to a combination of factors |
| borrower's home loan and current account. | | | | such as earnings being paid directly into the mortgage, |
| Current account mortgages are often referred to as a | | | | daily interest rate calculations, and no high interest loans |
| "line of credit". | | | | (e.g. credit cards) to pay off simultaneously. |
| The borrower will normally be required to have their | | | | A current account mortgage can, therefore, provide a |
| salary or wage paid directly into the current account | | | | borrower with many features for organising their |
| mortgage and will be allowed to withdraw money from | | | | personal finances and paying off their mortgage as |
| the line of credit as required - within a pre-determined | | | | soon as possible. |
| upper limit. | | | | However, despite the benefits, it is important for the |
| In addition to combining the mortgage with a current | | | | borrower to remain disciplined because excessive |
| account, it can also be combined with credit cards, | | | | withdrawals will increase the overall cost and term of |
| personal loans, and cheque book facilities in order to | | | | the mortgage and negate the benefits offered. |
| streamline the borrower's overall banking facilities into | | | | Because of this, careful consideration should be given |
| one product. | | | | before applying for a current account mortgage. |
| As well as helping to streamline the borrower's banking | | | | Professional advice may be sought from an |
| facilities, a current account mortgage can offer flexible | | | | independent mortgage adviser. |
| features that standard mortgage products do not, | | | | |