Flexible Mortgage

What Is A Flexible Mortgage?

A flexible mortgage allows you to make flexible choices in the requirements to make monthly repayments of your mortgage. Features of a flexible mortgage are:

  • to make overpayments (more than the normal amount)
  • to redraw (borrow back) any previous overpayments
  • to underpay – less than the normal amount
  • to take a payment holiday – stop repayments for a period, typically 3 to 12 months.

Flexible mortgages can often be very useful for self-employed individuals and those with a variable income.  They can also be useful for people who receive large
commission payments on an irregular basis.  Those commission payments can go straight to paying off mortgage debt.

Is A Flexible Mortgage Right For Me?

Flexible mortgages are ideal for those people who have irregular income or those who receive extra commissions and want to pay off the mortgage debt with those funds. Because so much flexibility is offered by the lender this usually comes at a price in that the interest rate offered is often higher than traditional rates.  If your income is not erratic and you want flexible features you can still have a traditional mortgage product such as a fixed rate or a tracker rate that also allows overpayments up to a certain limit without penalty.