Finance Articles

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 cheque 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.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Home Mortgage Loan Refinance – Benefits To Refinancing Your House Online
Here are some of the benefits to doing your home loan refinance online:Everything seems to happen faster - Online, when looking for a mortgage loan you can search around, fill out an application and a few minutes later, you can be receiving a pre-approval letter via email. There was no calling, no driving & no waiting on hold for an answer.

Types of Mortgage Interest Rate
Here is a useful guide to the different types of Mortgage Interest Rates that are available. Mortgage Lenders offer all kinds of different deals when it comes to the interest you pay on your mortgage.

Investment Real Estate Made Easy – Make the Most from Each Investment Dollar
When it comes to buying investment real estate, there are many schools of thought on how to get the most out of your money. Some say lease optioning your houses is the best and safest way to go.

Recently Launched Home Mortgage Education Site Helps Consumers Avoid Unscrupulous Home Loans
Mortgage Consumer Advocates (http://mortgagechampions.org/) (MCA), a non-profit corporation dedicated to giving consumers unbiased home mortgage education and tips on consumer protection, now helps consumers against being a victim of mortgage fraud. MCA's new Consumer Protection Plan will help give consumers added safeguards against unscrupulous lenders and brokers. This plan will help consumers get a mortgage professional to review his lending disclosures and later his closing documents prior to closing to make sure that consumers get the home loans they requested at the price they were quoted.

Mortgage Life Insurance Shopping
You thought you were finished signing the papers, but suddenly you are handed an insurance application asking you to confirm you are healthy and offering to pay off your mortgage in the case of your death. And if you're like most people, you sign it and think nothing of the cost as the quote is a low weekly or monthly figure. For most people that's a mistake, as they don't realize that a personal mortgage life insurance policy can cost a lot less and offer you a lot more.

Mortgage Leads, Get Your Customer Talking

Find the best mortgage deal in UK
The mortgage market has grown considerably and paved way for competitive mortgage deals. Borrowers can choose to surf the internet to access mortgage deals or opt for the old fashioned way and find mortgage lenders who offer interesting incentives and the best mortgage rates. For borrowers who opt for this old fashioned method, the mortgage process could turn out to be a long and tedious one. However online mortgage options are ideal for the borrower who wants to save a considerable amount of time and money.

Rothschild Investment Corporation Celebrates 100th Anniversary
Rothschild Investment Corporation (www.rothschildinv.com) today announced that 2008 marks the firm's 100th anniversary as an independent investment management firm. Founded the same year the Chicago Cubs last won the World Series, the firm has served generations of Chicago's entrepreneurs, professionals, families, retirement plans, endowment funds and foundations.

Mortgage Payment Protection Insurance Explained
Mortgage payment protection insurance is taken out in order to safeguard the possibility that you could come out of work due to an accident, long term illness or through unforeseen unemployment. The cover will usually pay out for up to a period of 12 months (with some policies, it will be for up to 24 months) providing you have been out of work for a defined period of time, which is usually around 30 days though can be longer depending on the policy.

Bestselling Offset Mortgages Guide Published by the Offset Mortgage Centre
The Offset Mortgage Centre, a UK-based provider of free finance and mortgage advice, announce the publication of their guide to bestselling offset mortgages.

Zero Down Payment Mortgage – Can It Be Done?
"I've been renting for years now; I've always paid my rent on time. I'll start a savings account soon, so I can buy a house": sound familiar? How much is in that savings account now? Just as I thought, not enough, you went on vacation, found a car you had to have, or WOW; look at the flat panel T.

Payment Protection Insurance Can Be Taken For Mortgage, Loan Or Income Protection
The family of payment protection insurance products are often very confusing After all while policies will basically work in the same way when they payout and for how long they payout, they pay for different reasons

Refinance Your Mortgage Rate - Unless You're A Woman
Behind many mortgages, there are two people. A man and a woman. While both of their names are on the paperwork, one of them never gets involved with the finances more than that.

Real Estate Investment - A Guide On Buy To Let
The process of purchasing an investment property is very different to that of buying a home for example, for you and your family to live in. There are many other considerations that must be taken into account before making this big step.