Diffrence between Current Account and Offset Mortg

Klee_3

Hi ,
Could someone please explain the difference between a Current account mortgage and an Offset Mortgage
i am a bit confused - i assumed these to be the same, but i found out that a CAM reduces the term by 16 years and an Offset reduces the term by 6. Both the mortgages have the same assumptions. ???

holly876dog

A cam is exactly what it says, the mortgage is linked to your curr acc (and savings) which is perhaps the best way of offsetting cos usually all your credits go through this account.
For an offsett you don't need to have a current account but you do need a savings acc to offsett, most of these usually do not have/give use to cheques books either. I also believe your salary doesn't have to be paid into the offsett.
I am not sure where you got those figures from that differentiate between the two but I can imagine the cam mortgage would be better if you have a lot of cash going through per month, although the figures suggest an example of R Bransons salary ....