What is a Flexible Mortgage? Is it Right for You? |
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A flexible mortgage, as its name describes, offers flexibility regarding how you repay your mortgage. Some borrowers like to keep their options open, whether it be chosing to make overpayments, underpayments, or take a break altogether.
A flexible mortgage gives you greater control of your financial outgoings but it can also come at an expense. |
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Benefits from overpayments |
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Making overpayments to your mortgage allows you to pay back your mortgage earlier and reduces the amount of interest that you’re paying on the total amount you have borrowed. Possibly the best reason to opt for a flexible mortgage, this could potentially save you thousands of pounds over the term of the loan. |
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Benefits of underpaying or taking a break |
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Underpayments can be equally useful and are especially beneficial for those with a variable income, such as the self employed or people who work on commission. It may be possible to take a break from repayments altogether. Most flexible mortgage providers will offer a short break of between 3 to 12 months where you don't pay anything. |
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What are the drawbacks? |
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Lenders may charge a higher rate of interest for maximum flexibility. Also, while taking a break or making underpayments, interest may still be charged and added onto the mortgage balance. Many lenders may also only allow underpayments or breaks where sufficient overpayments have already been made. |
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Read the small print! |
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It's important read the terms and conditions when considering a flexible mortgage. A true flexible mortgage should allow you to leave it without paying an early repayment charge, but this may not always be the case. |
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Call 0845 270 1010 or complete our short form if you'd like to speak to a mortgage advisor regarding flexible mortgages. Our quotes are free with no obligation. |
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Our consultations are free however we charge a standard fee of £295 for mortgages and £1499 for secured loans. |
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moneyQuest Mortgage Brokers Limited.
Registered office: moneyQuest, 3-4 Regan Way, Chetwynd Business Park, Chilwell, Nottingham, NG9 6RZ. Registered in England. No: 06593055
moneyQuest Mortgage Brokers Limited is an appointed representative of Legal & General Partnership Services Limited, which is authorised and regulated by the Financial Services Authority for advising on and arranging mortgages and insurance.
The Financial Services Authority does not regulate some types of buy to let, commercial, overseas mortgages, tax advice and credit or loans not secured on a property.
Calls may be monitored and recorded for training / compliance purposes. Approval Reference: H101523
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