Rather than getting a mortgage which in essence is a large loan, you may opt for a current account mortgage. Such a mortgage allows you to use your current account as the source for depositing your payments. Most lenders will insist on you paying your wages into this account and many may stipulate a minimum monthly payment.

This type of mortgage is more like a huge overdraft as it shows your account to be in the red by the amount outstanding on your mortgage. If for example you take out a mortgage for £220,000 and then your first monthly wage of £1,756 was paid into the account it would now show you to be £218,244 in the red.

One of the huge attracting factors for such a mortgage is that it allows the individual to make adhoc payments without penalty. Such a mortgage is ideal for those that may have a relatively low wage but regularly work overtime or operate on some form of a bonus scheme or commission. As these forms of income aren’t usually taken into account when calculating your mortgage, taking out a traditional form of a mortgage may penalise you for making extra payments.

This way you avoid any charges incurred for wanting to pay your debt off early and get to enjoy the flexibility to pay more when you can and the minimum when you need to.