Saturday, February 24, 2007

One Account Mortgage

Have you heard about the One Account Mortgage? I hear it's a great way to save money on a mortgage. The regular mortgage that we are accustomed to is just a big debt that we take time to pay it off and in the meantime, it accumulates interest.

Now there is a One Account Mortgage that allows us to pay off the mortgage sooner. How this works is that it allows the mortgage to be combined with our normal current account and monthly salary and the latter two are offset against the mortgage balance. I think this is a great idea as the extra funds will help to reduce the mortgage sum thus reducing on interest payment. Plus, extra savings built up can be counted towards the mortgage further reducing the interest.

Another one of its benefits is that it allows complete flexibility in managing your finances. You can overpay to clear your mortgage quicker, or underpay or even take a break from your payments if you need to. This account also works as a current account plus providing a host of other benefits.

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