Current Account Mortgages

Current account mortgages (or CAM's for short) combine a mortgage
and a current (banking & cheque) account. There are now a number of
lenders offering these types of mortgages, and they are becoming
increasingly popular. CAM's have similar features to flexible mortgages.
Generally at the forefront of mortgage flexibility, innovative flexible
current account mortgages are designed to fit in with today's flexible
careers and lifestyles. They can be ideal if you would like the option to
pay additional lump sums or make overpayments, thus reducing the
cost of your mortgage at a stroke and also shortening the term.
You may be self-employed with income fluctuations. Or you may earn
commission or bonuses that make this possible. Their unique selling point is
that you can combine what you own and what you owe to save thousands of pounds.

For example, you can pay your salary into a combined mortgage and current
account each month. Your capital is instantly reduced and therefore your
interest is reduced (make sure your lender calculates your interest on a
daily basis for the best deal). Even as you draw on this money over the
month for living expenses you save interest by having the reduced capital.
In addition homeowners with cash to spare have discovered that CAM's
give them a better deal than many instant access accounts. By switching
your savings into these flexible mortgages you can reduce your mortgage
interest and repayment term at one stroke. The results of all this can be
that you end up paying your mortgage off years earlier and save yourself thousands.