Clydesdale Bank has launched a new flexible current account mortgage, Rapid Repay, combining all accounts under one umbrella. Within the account, consumers can view their current account, overdraft, personal loan, mortgage and savings accounts.
Paul Fegan, manager of personal financial services at Clydesdale, said: ‘As an all-in-one current account mortgage, Rapid Repay allows savings to grow tax free at the mortgage interest rate when savings rates are falling.’
He continued: ‘It effectively offers equity release through immediate access to cheap further borrowing, with added assurance of a built in safety limit that will ensure the mortgage is still paid off in the original term.’
The mortgage is a capital and interest repayment plan with a single variable rate of interest set on the entire loan, currently at 5.47%. The minimum loan amount is £40,000 and the maximum loan to value is 90%.
Clydesdale has also launched a software package designed to help consumers budget and manage their mortgage loan.
Fegan added: ‘We want people to see their home as a base from which to live their lives, not as something that restricts them.’