Current account mortgages - from the Co-operative Bank

Current account mortgages take the form of a bank account, however in place of an overdraft the account lists the total outstanding balance borrowed.

A large benefit to current account mortgages is their flexibility. Many mortgage providers charge fees for underpayment, overpayment and early repayment, with a current account mortgage you can pay off as much of the outstanding balance as you want every month.

Savings can also reduce the mortgage balance outstanding, which cuts down on the interest that will be paid. However it is important to note that any savings in the current account which are being used to offset the mortgage cannot accrue any interest.

The Co-operative Bank are offering various current account mortgage deals.

For those with a 15 per cent deposit they offer a lifetime tracker for 85 per cent loan to value at 3.69 per cent, which is BOE base rate + 3.19 percent.

For those with a 25 per cent deposit they offer a lifetime tracker for 75 per cent loan to value at 2.79 per cent, which is BOE base rate + 2.29 percent.

For those with a 40 per cent deposit they offer a lifetime tracker for 60 per cent loan to value at 2.59 per cent, which is BOE base rate + 2.09 percent.

Co-operative Bank current account mortgages are available to smilemore account, standard current account, smile current account, plus current account, privilege and privilege premier current account holders only.

Please note: Any rates or deals mentioned in this article were available at the time of writing.

Deal Direct can find you the best current account mortgage deal available.

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