Why Consider A Flexible Mortgage

Why consider a Flexible Mortgage

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Becoming a homeowner is a huge responsibility and one that unfortunately will almost certainly come hand in hand with many years of mortgage repayments. In a financial climate where it is becoming harder to borrow money, you need to think about your options carefully. There are indeed many advantages of opting for a flexible mortgage and this need to be considered carefully.

Although a flexible rate mortgage may have a higher interest rate than a standard fixed or tracker option, the flexibility offered really does compensate well. With a UK flexible mortgage, you do not have to worry about an unexpected financial crisis, or even having to stick to a rigid repayment scheme; the system allows you to pay off your mortgage in a way that you can really manage.

Overpay your flexible mortgage

Firstly, if you choose a flexible mortgage, you are not strictly bound to paying off the set amount each month. If for example you come into some cash, then you can make some early repayments that will allow you to finish paying back the total amount a lot sooner. Of course, the sooner you pay back your mortgage, the less you will pay in the end, so this is a real consideration.

Take a payment holiday with your flexible mortgage

A fixed rate mortgage may assure you against unexpected rises in interest rates, but it will give you no flexibility to pay off the sum early or late. With a flexible UK mortgage you can take a holiday from your payments; this can help you out a great deal if you have come into financial difficulty. A mortgage holiday is an excellent way to counter balance any early payments that you have made without getting behind in the overall repayment schedule.

By building up an extra reserve of cash through some lump sum deposits, you will have the choice to take a mortgage holiday without being penalized. These excess payments made will allow you to feel safe in the knowledge that if you run into difficulty then you will not risk losing your property.

Alternatively, you can choose to take a mortgage holiday for any other reason such as to fund a business venture or even to go on holiday. Although you should not treat this option lightly and you need a certain amount of self control here, this flexibility is warmly welcomed by hundreds of clients each year.

Being able to pay off your mortgage early or delaying payments to allow you to cover other expenses are the main disadvantages of a flexible mortgage, the facility usually being offered on a daily interest basis. A flexible facility will usually allow you to make draw downs on funds where necessary, and once again, although you need to use this service very wisely, it can be of some great help to you.

Pay your flexible mortgage as you wish

Being able to withdraw cash from your fund as well as building up extra payments gives you the flexibility to pay off your mortgage in the best way you seem fit. You will often find that payments are also often every four weeks instead of monthly, this translating into thirteen flexible repayments each year.

A flexible mortgage is a great option if you are self employed or have a variable income throughout the year. Using this method, you can simply pay off more or less depending on your monthly income.

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