What are flexible Mortgages?

A flexible mortgage is a type of mortgage that could allow you to make overpayments, underpayments and take payment holidays without any additional cost to you.

Flexible mortgages are especially good as they allow you to overpay on your mortgage and save on interest rate payments.

Most flexible mortgages will:

  • Allow you to make Overpayments
  • Allow you to make Underpayments
  • Allow you to take Payment Holidays
  • Provide a reserve account from which you can access overpayments you have made
  • Ability to offset savings and reduce the amount of mortgage debt you pay interest on

Advantages of Flexible mortgages

Flexible mortgages give you the option to overpay or underpay which can drastically reduce the cost of your mortgage.

Flexible mortgages allow you to manage your financial life especially in times when your financial situation becomes worse. You can take payment holidays at no cost to you

Disadvantages of flexible mortgages

Flexible mortgages will usually have higher interest rates than typical mortgages due to their flexibility.

Seek the advice of a mortgage broker when considering flexible mortgages.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.