current account mortgage

current account mortgage
Fin
a longterm loan, usually for the purchase of real estate, in which the borrower pays interest on the sum loaned in monthly installments and repays the principal in one lump sum at the end of the term. When calculating the interest payments, the lender takes into account the balance in the borrower’s current and/or savings accounts. It is the borrower’s responsibility to make provisions to accumulate the required capital during the period of the mortgage, usually by contributing to tax efficient investment plans such as Individual Savings Accounts or by relying on an anticipated inheritance.
See also mortgage

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