FISCUS MORTGAGES - INFORMATION AND ADVICE

Flexible Mortgage

A flexible mortgage (sometimes referred to as an “Australian-style” mortgage) accommodates a flexible repayment schedule. In other words, you can overpay on monthly repayments, pay lump sums into your mortgage and some mortgage providers offer “payment holidays” – a window of a few months without making any repayments. All these features would be associated with flexible mortgages, but would not necessarily all appear on any single mortgage advertised as a “flexible mortgage”.

The benefits to a flexible mortgage are pretty clear. If you happen to get hold of a sizeable amount of money and fancy paying off a chunk of your mortgage, you will not be penalised for doing so. Similarly, if you were to find yourself unemployed for a while or see your income drop for a short period, you would be able to postpone your payment for a few months while you solve your income shortfall.

Flexible mortgages are all the rage these days, with most lenders offering some kind of flexible mortgage product. They often work hand-in-hand with the growing range of offset mortgages that are being snapped up.

To provide you with an idea of the interest rates you can expect, we suggest you view our daily updated flexible mortgage tables, which allows you to compare the vast majority of flexible mortgage products currently available in the UK.

FEATURES AVAILABLE ON FLEXIBLE MORTGAGES

Many financial institutions will offer flexible features on their traditional range of mortgages. The most popular features offered are:

1. Penalty-free lump sum repayments – Should you earn a windfall, such as a policy maturity payment or an inheritance, you would be able to repay a large chunk of your mortgage, free from penalties.

2. Overpayment – Should you wish to pay back some extra each month, you would be allowed to do this.

3. Underpayment – If you cannot meet the monthly payment, you may be able to pay less for any given month, or possibly have a “payment window” – authority to miss your payments for a few months. Some lenders will only allow a payment window if the borrower has overpaid in the past.

4. Increase borrowing – Some lenders will be prepared to let you borrow further funds against your mortgage. You will usually need equity available on the property to secure these funds.

Although many people will be tempted by some flexibility with their mortgage, flexible mortgages are particularly good for the self-employed, small company directors and other individuals that may have irregular incomes.

The best, most through way of unearthing all the options available to you is to get expert financial advice. Please complete our online mortgage enquiry form and we will have an Independent Financial Adviser (IFA) contact you within 24 hours.