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Flexible Mortgages

In recent years lenders have introduced flexible mortgages into the market that allow you to vary your monthly repayments.

Generally speaking you have the option of overpaying, underpaying, or even taking a payment holiday.

The obvious advantage of overpaying, for example, is your outstanding loan will reduce more quickly and this will cut the total interest paid over the term of the loan.

A possible disadvantage of flexible mortgages is that they often charge a higher interest rate than say a typical fixed, discounted or tracker mortgage. However some lenders now offer the option to overpay up to a certain amount of capital per year, for example 10% of the mortgage balance, without incurring any Early Repayment Charges