Why choose a current account mortgage?
Current account mortgages are increasing in demand and this has been been attributed to mortgage-holders wanting more simplistic and understandable mortgage options.
Current account mortgage deals are like bank accounts, simply speaking the mortgage debt is displayed as the outstanding amount borrowed. Each month an agreed repayment amount is made until the debt is clear.
For many mortgage-holders the main benefit of a current account mortgage is flexibility.
There are no fees for over, under or early repayment and mortgage-holders can repay as much of the balance as they want on a monthly basis.
A home-owner's savings can also be used to reduce the mortgage balance which cuts the interest to be paid saving thousands of pounds over the mortgage term. However any savings used to offset the mortgage will not accrue interest.
Mortgage borrowing can become more affordable.
The flexibility of such mortgages allows home-owners more access to affordable borrowing, money can be drawn down that has been used to repay the loan saving the need for remortgaging to release equity.
Mortgage conditions differ between lenders but to ensure that the monthly repayments are met as agreed one salary must be paid into the account.
To discuss current account mortgage options and to get a low rate quote call Deal Direct on 0800 048 8828
