Current Account Mortgages

HopefulBTL

Can someone explain the charges involved with a current account mortgage? If I took out a mortgage but didn't want to spend the money immediately, IE, the money was left completely in the account possibly for a few months, what kind of charges would I be paying for the privilege of it being available?

Thanks in advance,

Anthony

Thrugelmir

If you don't complete a house purchase then you won't be advanced the money.

A mortgage is not a cash loan to spend as you wish.

HopefulBTL

Apologies, it seems in editing my initial question I cut out a vital point - what I want to do is remortgage a wholly owned property to release equity.

Thrugelmir

The cost to you will be the interest charged while the unutilised funds are earning less.

roonaldo

it makes no financial sense to do it that way. it will cost you a bomb in interest.

getmore4less

Rubish posted above.

It costs you nothing to run a 100% offset situation.

Be it a CAM or offset.

Setup costs then interest is ZERO untill you draw down.


The lender may want to know what the money is for, they may want something credible like building work.