Flexible Mortgages

Unlike most mortgages, which have fixed monthly repayments, some types of flexible mortgages let you vary your repayments up, some let you reduce your payments or even take payment holidays without penalty to help meet your own circumstances. If your income varies from month to month, if you want to be able to repay more when you can, or if you want to be able to stop making payments for some months should there be any unforeseen problems with your finances, then a flexible mortgage could be an option for you.

In general a flexible mortgage costs more. But if you are likely to make overpayments and if interest calculations on your outstanding mortgage amount are made monthly (or preferably, daily) then you will almost immediately pay less interest. But, similarly, if you underpay then the interest on a larger outstanding balance adds up and you will have to make it up with bigger payments in the future. If you believe you will have an influx of money some time in the future and want to have the possibility of settling your mortgage before the end of the term without early repayment charges, then flexible mortgages without redemption penalties could be advantageous.