Current account mortgages

Current account mortgages combine a repayment mortgage with a current account.

Your salary is paid into the account so the deficit and interest are reduced monthly. You have the option to make overpayments to reduce the debt more quickly.

Interest is calculated on a daily basis so you are not paying interest on an amount already paid off because the overall size of the loan has been reduced. It can be thought of as like a massive overdraft.

 

One Account new mortgage terms

A high profile lender has launched a new current account mortgage, claiming that it will enable customers weigh up their earnings against what they owe, in order to pay off their house quicker.