current account remortgage

With a current account remortgage you can track all of your finances through one account. This includes your mortgage, loans, savings and current account. The idea is that at the end of every month, any cash in the account will be used to pay off the mortgage. Interest is calculated daily and charged on the outstanding amount. This gives you greater flexibility to make repayments at the rate you prefer. Usually, current account remortgage lenders will agree a minimum repayment amount each month.

A current account remortgage doesn’t suit everyone. If you can regularly leave more than the agreed amount in your account at the end of the month, then you could save money in the long term. Before you decide, it’s worth considering the following points:

If you are a high rate taxpayer or have a large amount of savings this could be a very useful arrangement
Interest is only charged on the outstanding amount, reducing your interest payments overall (if you regularly overpay)
Very flexible - giving you greater control of repayments
You will probably be required to pay your monthly salary directly into the current account remortgage
Because of the increased risk to the lender, it’s often a higher interest rate than fixed or variable rate deals
This remortgage type requires some discipline to ensure that you make sufficient payments and have enough cash available each month



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