Current Account Mortgages

These are amazing things. Every time any money hits your bank account, it starts paying off the mortgage. So, you have your current account, your savings account, any other loans and your mortgage all rolled into one. You can afford to take it interest only, because by the time you get to the end of the term, you’ll have paid off all of the interest and quite a lot of the capital. Interest is, in any case, calculated on a daily basis.
All banks have them, though they don’t advertise. They are a bit picky about who they let have these mortgages. The interest rates do tend to be a little higher than on other mortgages, but you still end up paying less.
They tend to suit the self-employed or people whose earnings are unpredictable, given that there is a sufficient base to pay off the monthly repayments. For instance, a writer, like myself, who also has a regular day job could use the day job to pay the bills and the mortgage. The royalties and paid visits go into the mortgage account, and reduce the mortgage.
I’d be interested in hearing form someone who has one of these accounts. Let us know how it is going.