Flexible Mortgage

A Flexible or 'lifestyle' mortgage is designed to let you to make additional mortgage repayments when you have money to spare and to reduce, or even skip mortgage payments when necessary. With a flexible mortgage, borrowers normally have to build up a reserve through overpayments before being allowed to underpay or skip mortgage payments.

Flexible Mortgage Benefits

The main benefit of having a flexible mortgage, is that many flexible repayment schemes are offered on a daily or monthly interest calculation basis, (sometimes referred to as 'daily rest' or 'monthly rest').

Until the arrival of flexible mortgages, most UK mortgage lenders were charging interest on an annual basis. This meant that borrowers making over-payments to their mortgage, were not seeing the benefit straight away, because it could be a year before the capital was reduced by the over-payment. Whereas, on a flexible mortgage, (lifestyle mortgage), where the interest is being calculated on a daily basis, any over-payment reduces the mortgage balance immediately and the borrower will be charged less interest from the following day.

Reduced Repayment Period

Without going into detail to explain this mortgage option, the up-shot is that over-paying the flexible mortgage on a monthly or regular basis, even by a relatively small amount, may reduce your mortgage term by years, (hence reducing the repayment period).

Flexible Mortgage Application

If you are interested in a flexible mortgage, follow the link below and take a few minutes to complete the Flexible Mortgage Application Form. There is no obligation, so what do you have to lose? Enquire now.