You

The Current Account Mortgage might not be for you if you are of the opinion that your investments (savings) will out perform your mortgage interest. The only problem lies in the fact that a mortgage lasts a long time (normally 25 years) and so to predict the end value of a long-term investment is very difficult. If the end value of your investment didn’t perform then in hindsight you would have been better off with overpaying on your mortgage.

You need to remember that savings accounts generally offer lower interest rates than that payable under a mortgage. Some Banks and Building Societies will take their savers money and lend it to their borrowers. This principle must create a profit margin and therefore the borrower rate will be much higher than the saving rate. Also as a saver you will be subject to tax on the interest. It is unlikely that mortgage lenders will encourage too much more Current Account Mortgage lending. If every mortgage were to be arranged under a Current Account Mortgage you would soon find mortgage rates increase as savings deposits would be decreased significantly.

Just a thought

The interest rates tend to be higher than that payable on a flexible mortgage.

If you do not exercise the investment part of this facility you are unlikely to gain full benefit.

You may not keep to your savings plan