Imagine being able to miss a monthly mortgage repayment or two without a nasty letter popping through the letterbox?
Don't imagine. Simply substitute 'missed repayments' with 'holiday payment' and you've got one of the benefits of the flexible mortgage!
Flexible mortgages are relatively new in the UK and, as the name suggests, are flexible enough to respond, within predefined limits, to the borrowers financial situation - both good and bad.
The facility to increase monthly repayments is one of the features usually associated with the flexible mortgage. Thus, interest, normally calculated on a daily basis, is reduced, as is the mortgage term itself, all without incurring early repayment charges.
Another feature often associated with the flexible mortgage is the ability to underpay, usefull if the borrower is experiencing financial difficulties. Again, limits are set by the lender when the mortgage is arranged.
And if the borrower has made overpayments, these, too, can be 'borrowed' back if financial difficulties persist.
Lenders can also provide the ability to access further funds, even providing a chequebook for the purpose. However, they will usually set a limit to the amount of additional funds available.
