A Current Account Mortgage (CAM) combines your mortgage and current account, to give you one balance.

So if you have £2,000 in your current account and a mortgage of £90,000, then you are in effect, £88,000 overdrawn.

Your debt is smallest just after your salary is paid in, and it then grows during the month. You make a standard payment every month which is designed to clear the mortgage over the term you have chosen.

The extra money in your account is like an overpayment on the mortgage and this enables you to pay off your mortgage much quicker. Any extra cash savings can be added to reduce the loan balance further.

In addition, you can also transfer other debts like credit cards or personal loans to the account to take advantage of the lower interest rate.

Pros: Someone who spends less than they earn each month is effectively overpaying their mortgage every month and should clear it more quickly, potentially saving them thousands of pounds in interest payments.

Cons: This style of mortgage is not for those people who are not super organised with their money. The interest rates charged on current account mortgages are higher than those on most mortgage deals. To work well you need to have a reasonable amount of money coming into (and already in) your current account.