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Current Account Mortgages

HopefulBTL
HopefulBTL Posts: 8 Forumite
in Mortgages & endowments
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

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    HopefulBTL Posts: 8 Forumite
    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
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The cost to you will be the interest charged while the unutilised funds are earning less.
  • roonaldo
    roonaldo Posts: 3,420 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    it makes no financial sense to do it that way. it will cost you a bomb in interest.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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.
This discussion has been closed.
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