Current Account Mortgage UK

A Current Account Mortgage UK Guide

The current account mortgage UK market is growing, with all flexible mortgage products accounting for around 10 per cent of home loans. That figure is expected to rise to 50 per cent within five years, as more and more UK consumers are seeking the flexibility that current account mortgages and offset mortgages provide*. There are several current account mortgage UK providers. This article is a guide to some of those.

Perhaps the best known current account mortgage UK provider is Virgin which launched the product on the UK market several years ago. As the first current account mortgage UK provider, Virgin set the scene for the wealth of flexible mortgage deals that are now available.

The Royal Bank of Scotland One Account

RBS now offer current account mortgages. Its One Account gives current account mortgage UK borrowers a borrowing facility of between £30,000 and 99 per cent of the property value. This limit reduces each year until the current account mortgage is repaid, which must before borrowers retire. The account comes with a debit card and a Visa card and borrowers can spend what they like, as long as they stay within the limit. This current account mortgage UK provider offers initial interest rates of between 6.9 and 7.45 per cent, depending on the amount borrowed. Although borrowers pay legal fees, valuation fees and money transfer fees when setting up the account, there are no application, arrangement or early redemption fees. With this current account mortgage UK borrowers can consolidate their debts, transferring loan and credit card balances to the account to pay the mortgage interest rate on all. And unlike other current account mortgage UK providers, RBS does not require people to use the account as their main current account. Instead, borrowers can simply make a monthly payment into the account to cover their mortgage.

Intelligent Finance

Another current account mortgage UK provider is Intelligent Finance, which also has a current account mortgage. This has many of the features of the Royal Bank of Scotlands One Account. Borrowers combine their savings, mortgage and current accounts to reduce their mortgage interest. With this current account UK mortgage provider, the initial rate ranges from 5.74 per cent to 6.4 per cent. There are no early repayment charges except one of their deals. IF also say customers can have as many accounts with this deal.

The Woolwich CAM

The Woolwich is another current account mortgage UK provider, with two current account mortgage deals. Both of them wrap all borrowings into the current account mortgage and have an initial rate of 6.49 per cent. With a maximum loan to value of 90 per cent, has a borrowing limit which is set to allow borrowers to still repay their mortgage on time. This limit is set during the set-up phase so there are no extra forms to fill in. For those that are interested the current account needed for this mortgage is held with Barclays.*

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© 2007 and 2008 Offset Mortgage Centre | Terms and Conditions | Privacy Statement | We don't charge a fee for admistration of an offset mortgage. The Offset Mortgage Centre is the trading name of The Mortgage Broker Ltd, (a whole of market mortgage broker), which is an appointed representative of Home of Choice Limited, which is authorised and regulated by the Financial Services Authority | Your home may be repossessed if you do not keep up repayments on your mortgage. *Source: Trigold - 15/1/08.