Restrictions on standard mortgages
When you take out a mortgage on a standard arrangement you agree terms with the lender, these terms will include factors such as how much you are borrowing, the interest rate you will be charged, and over what period you will repay the loan.
Since the lenders objective is to make profit on the loan, they will restrict your ability to make transactions on the account which could be detrimental to that profit.
As an example overpayments may be subject to an early repayment charge, and additional lending may be subject to further product or arrangement fees. If you find that you have a need to reduce your payments or take a payment holiday, you will need to negotiate on each event separately with your lender and they may or may not allow you to do this.
Flexible mortgage for control
A flexible mortgage arrangement gives you far greater control and options with regard to repaying your mortgage. Under the flexible arrangement, terms and conditions on the lending are set up such that the lender allows you full flexibility with your loan.
You can make overpayments, underpayments, take payment holidays, or draw back capital that has already been paid.
Whether or not you use any, some, or all of these options is entirely a matter for you, they will be available without recourse to the lender and without additional fees being charged.
Flexible mortgages are not for everyone. The interest rates charged on these deals is commonly a little higher than on the equivalent the standard product.
If you are considering a flexible mortgage you should make sure that you will use it’s features.
Flexible Mortgage – get advice
Not all lenders offer flexible mortgage arrangements so getting advice in the first instance is of paramount importance.
Our team are waiting to hear from you.
We can evaluate your own circumstances to establish if a flexible mortgage is right for you – contact us now.
