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Flexible Mortgages
For people who are looking for a more versatile kind of mortgage that suits a changeable lifestyle, one where perhaps the borrower has shifting financial demands or changes job regularly, a Flexible mortgage could be ideal.
Due to the recent increased popularity of this kind of mortgage many lenders have begun to offer more flexible elements to some of their more conventional policies, but it is worth remembering that the more flexible the mortgage the more interest will be payable.
This kind of mortgage offers a number of key characteristics which set it apart from other varieties, but these features may not all be of use to every borrower so consider which you will need and which not, as a partially flexible mortgage which suits your needs will more often as not work out better value.
The four features that identify a Flexible mortgage are as follows:
- The ability to make 'overpayments' at times of fiscal comfort thereby saving on interest payments.
- Conversely, the option to 'underpay' when things are less financially rosy, although you also pay more interest in the long run.
- The chance to 'borrow back' money that has already been paid towards the mortgage at a lower rate than most personal loans, but it is secured on the borrower's property.
- Better returns on any savings that are 'overpaid' into the mortgage than in a high-interest savings account.
These mortgages also offer the benefits of daily or at least monthly calculated interest, so payments over the course of the mortgage can work out significantly less
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