Current account mortgages... worth it?

M

michael1

Guest
Thinking of switching to a current account mortgage with first active. Are they worthwhile? Any drawbacks?
 
AFAIK you can only offset one account with First Active. With NIB we have 5 accs offset - 3 Current Accs and 2 savings accs.

We had a nightmare getting it set up with NIB, but hopefully now its all sorted. Still early days so will wait and see how the savings stack up.

BTW we actually switched from FA, and our repayments are about €140 less pm, and the term is already 5 years shorter, so in that we are certainly seeing a difference.
 
Offsetting spare funds against a mortgage via a current account is a good way to reduce interest costs. However some CAMs charge higher rates than available elsewhere. You'd need to crunch the numbers to see if the rate is competitive and, if not, if the amount that you would be offsetting on deposit against the mortgage could yield more benefits than the costs involved. There are several existing threads on CAMs that would be worth reading.
 
You must log in or register to reply here.
Back
Top