Flexible mortgages allow you to pay off chunks of your mortgage in lump sum payments, make extra monthly payments, borrow money back, take payment holidays and pay less than your standard monthly repayment. Which is useful if your income fluctuates on a regular basis.
Flexible mortgages put you in charge of your finances, and offer the potential to save a huge amount of money if used properly. They are not always the offered at the lowest interest rates; you may have to pay a slight premium for maximum flexibility. Flexible mortgages are increasingly popular in the UK.
The best thing you can do with a flexible mortgage is make overpayments. This will allow you to pay off your mortgage early and potentially save many thousands of pounds in interest payments.Some will only allow you to overpay a maximum figure per month (e.g. £500), while some will let you pay off a maximum percentage of the mortgage amount per year (eg 10%).
To be really flexible, a mortgage should allow you to leave it without paying an Early Repayment Charge (ERC), but as many flexible mortgages these days come as fixed rates or with discounts, this is not always the case.
Flexible mortgages for first time buyers are particularly suited to anyone who can’t be sure they’ll always have enough cash when they need it, due to the nature of their work pattern. Due to the lesser restrictions on repayments, flexible mortgages often have higher average interest rates than some of their counterparts. The primary providers of flexible mortgages are banks, building societies and specialist mortgage companies. If your income varies each month due to various factors or if you want to manage your mortgage payments to suit your fluctuating cash flow needs we suggest you opt for flexible mortgages.
We can introduce you to a network of national mortgage brokers who specialise in different types of mortgage advice depending on your requirements. Just complete the short flexible mortgage enquiry form above and have an FSA approved mortgage advisor call you back ASAP.
If you need to get your hands on a remortgage instead, which can be used for any purpose and your credit history is not very good then you should apply online here for a Bad Credit Remortgage.