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Current Account Mortgages
If you are looking for a mortgage that is as flexible as anything on the market, then a Current Account mortgage will be ideal. Put simply, a Current Account mortgage works by combining all your finances - bank account, debts and the mortgage itself - into one account. In practical terms this means that any earnings that are paid into the account every month will be put towards the mortgage, which reduces the money owed thereby reducing the amount of interest needing to be paid.
Although this method works well for many, one thing to be wary of is that these policies can be miss-sold as having more genuine benefits than they actually do, sometimes offering features that are common to all varieties of Flexible mortgage as opposed to specifically Current Account mortgages - don't be fooled. In this, as in other instances, the sales hype fails to live up to reality because the relatively small actual benefit that choosing a Current Account mortgage over even a standard mortgage brings: in real terms, your overall gain over the course of the mortgage would amount to about a quarter of a percent on the interest rate.
Most people who opt for the Current Account mortgage, or indeed any flexible policy, do so in order to take advantage of being able to overpay at times and in the past this made sense - but these days many types of mortgage offer penalty-free overpayment and, being at a lower rate than Current Account mortgages, therefore make more sense.
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