Flexible Mortgages - Cheap Mortgage Deals

This is a popular choice with homebuyers who have a variable income and are able to make over payments; self employed people who may need to occasionally make underpayments if necessary and those wanting to take a career break. It is not suitable for the majority of first time buyers who need payment stability.

The standard features of a flexible mortgage are that you can make either under or overpayments. With over payments you would be able to pay off your loan with less money and to pay it off more quickly. No penalty charge should be levied against you.

If you decide to make underpayments or take payment holidays you will need to check with the lender to see what sort of limit they set on the frequency of underpayments or holidays as some only permit them after 6,12 or 24 months some lenders will not allow underpayments due to redundancy or other circumstances. Some mortgages will also allow you to withdraw money from your loan. This drawdown facility will be set with a pre agreed borrowing limit or equal sum to the amount of over payments made previously. Since interest is charged at the same rate as the mortgage this is a cheaper way of borrowing money than through loans or credit cards.

If you do make underpayments or take payment holidays, the overall amount of the loan owed will increase and your repayments will be re calculated by the lender to make sure that the full loan is eventually paid off.