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Flexible mortgages take many shapes and forms, with borrowers being able to choose from a host of features. Traditionally mortgages with flexible features tended to have a higher interest rate, however increasingly flexible mortgages are available at market leading rates or with only a very slightly higher rate, making very attractive products.
A Flexible mortgage is particularly suitable for the different working lifestyles that are becoming more popular, such as being self-employed, freelancing or contract. The fact that you can take a payment holiday, or overpay and underpay is an obvious benefit for people whose income can vary over the year.
There are many different flexible features that may be offered, including: being able to overpay; being able to suspend payments; being able to borrow back. Most lenders will now allow limited overpayments (e.g. to overpay by up to 10% of the balance each year) while other will give full flexibility, allowing you to overpay as much as you like and later to draw it back again at the same rate.
Offset mortgages are one particular type of flexible mortgage that has become increasingly popular, enabling you to offset either savings and/or current accounts against the mortgage in order to either reduce the monthly payments or to reduce the capital quicker and pay off the mortgage quicker. This is particularly popular with people who have cash savings, or who wish to maintain reserves of cash that they can quickly and easily access.
If you want to have flexible features, or to consider a full offset mortgage, just mention it to your mortgage adviser and they will be able to explain the most suitable options for your particular requirements.
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