How To Use A Current Account Mortgage

How To Use A Current Account Mortgage 1

How to​ Use a​ Current Account Mortgage
If you​ are searching for a​ mortgage then you​ probably know about the​ common types of​ mortgage like fixed rate and variable rate .​
What you​ might be more unfamiliar with is​ a​ newer type of​ mortgage known as​ a​ current account mortgage .​
If you​ are in​ the​ market for a​ mortgage or​ are looking to​ change your existing one,​ then you​ should definitely consider a​ current account mortgage.
What is​ a​ current account mortgage?
A current account mortgage is​ the​ most flexible type of​ mortgage available .​
Basically,​ all of​ your money goes into one account .​
Your mortgage is​ opened up as​ a​ current account,​ and you​ are given a​ debit card,​ chequebook and credit card .​
Any current credit card debts you​ have can be transferred to​ the​ balance,​ and all of​ your wages get paid into the​ account .​
The current account mortgage puts all of​ your money in​ one place,​ both incoming money and debt.
Why is​ this a​ good thing?
Having all your money in​ one place can be extremely beneficial .​
Firstly,​ you​ can see exactly how much you​ owe on​ everything .​
You view one account and know how much money you​ have to​ pay back .​
Also,​ there are definite financial benefits to​ a​ current account mortgage .​
Firstly,​ the​ interest is​ calculated daily so you​ only pay interest on​ the​ current balance .​
Also,​ you​ are paying less for your mortgage,​ because your wages help to​ speed up the​ paying back process .​
You can also add any savings that you​ have .​
In addition to​ this,​ the​ fees for current account mortgages are very low,​ and you​ are unlikely to​ be charged for arranging the​ mortgage or​ incur any redemption penalties .​
If you​ use a​ current account mortgage in​ the​ right way,​ you​ can save thousands on​ your mortgage.
Are they any downsides?
As with any financial product,​ there are also downsides to​ current account mortgages .​
Perhaps the​ biggest problem is​ the​ temptation to​ spend too much money .​
If all your money is​ in​ one place,​ it​ is​ hard to​ see whether or​ not you​ are on​ track to​ pay your mortgage back .​
With a​ large mortgage loan as​ an​ overdraft you​ seemingly don’t run out of​ money,​ and by the​ time you​ realise you​ are in​ serious trouble it​ is​ too late .​
If you​ cannot be disciplined with your money and budget regular payments then a​ current account mortgage might be an​ unwise choice .​
Are they worth it?
Despite the​ problem of​ money management,​ current account mortgages are one of​ the​ best choices around .​
Of course,​ they are not suitable for all people,​ and it​ pays to​ consult a​ financial advisor before proceeding .​
However,​ if​ you​ are a​ disciplined person who can budget well and you​ want all of​ your debt in​ one place at​ a​ low mortgage rate,​ then a​ current account mortgage is​ a​ good choice .​
If you​ spend wisely then you​ will save thousands and pay back your mortgage more quickly than with other types of​ mortgage.

How To Use A Current Account Mortgage

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