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Current Account Mortgages - Best4U Kettering Northamptonshire
Current account mortgages is another form of flexible mortgage. In this case, the mortgage is linked to an everyday current account. Your mortgage is, in effect, like a big overdraft.
This means that you have immediate access to your mortgage account and can pay in more, or less, with ease. Interest is charged daily, so any changes you make will have an immediate impact on your mortgage balance.
A current account mortgage is also a useful way of saving money that you may otherwise put away elsewhere. It makes more sense to pay less for your mortgage than to be taxed on your savings. And because a current account mortgage is not considered by the government to be a savings vehicle, you are not taxed on your deposits.
You need to be disciplined if you have a current account mortgage. Just as it is easy to pay into your mortgage, it is equally simple to spend your equity. Careful management is required to make sure that you mortgage balance is constantly reducing; otherwise you may never pay it off!