Best combined mortgage and current account

Jemma48_2

I have been hearing about combining my mortgage with my current account to reduce the mortgage length - does this really work and can anyone recommend a mortgage provider that offers this service?

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sodamhall1

Yes this can really work as long as you use it in the right way. The one account offers mortgage and current account together they may be others.
These type of accounts work as a very large overdraft so the more money that is in the account the lower the balance the lower the amount of intrest you are being charged. The longer the money is in the account for the bigger benifit.
Here is a example based on simple figuers so you can understand: Lets say you have a mortgage with bank A of - 100k
In the current today bankB there is - 2k
In savings account bankC there is - 8k
The total amount you are in debt is 90K but it is in three places, with these types of account it takes any money you have and puts it in one place.
So with the one account you balance would be 90k so you are only paying intrest on this amount not on 100k like before

phizzimum

we have an offset tracker mortgage with woolwich/barclays.

unlike the one account, our mortgage is kept separate from our savings and current accounts. it suits us very well as DH is self employed so the money we save for our tax bill is offset against our mortgage payments. It also means we don't have to chose between putting money into our savings or paying it off the mortgage as effectively we can do both, but be able to get to our money should there be an emergency.

the downside of these sorts of mortgages is often a higher rate of interest, so it pays to shop around to see if it will work for you.

dimbo61

hi jemma 48, first direct have some good deals at the moment (I dont work there) 4.99% fixed offset for 5 years fees £598,
the more you can offset the quicker you can clear the mortgage.
as sodamhall 1 said you have a massive overdraft each month and you need
to be disiplined in your spending.
good luck