Flexible Mortgage

In recent years, lenders have introduced flexible mortgages to allow you to vary your monthly repayments. Generally speaking you have the option of overpaying, underpaying, or even taking a payment holiday. The obvious advantage of overpaying, for example, is your outstanding loan will reduce more quickly, saving interest.

If your circumstances change and you might have the need to pay less. The advantage of a flexible mortgage is you won't be penalised in these circumstances. But if you wish to make an underpayment you'll only be allowed to do so as long as overpayments have previously been made.

Flexible mortgages often come with cheque books attached. So conversely, if you suddenly need an extra £5,000, you'll be able to write a cheque and in the process increase the overall size of your homeloan to £80,000.

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