Guide to Flexible Mortgages UK

Flexible mortgages are designed to allow variations in the amount people pay in their monthly repayments. For example most flexible mortgages allow borrowers to pay more back, thus enabling you to pay of the mortgage early. Also flexible mortgages often allow scope for a payment holiday. This is when with the agreement of your lender, you can avoid making payments for up to 6 months. However this will mean higher interest payments in the future. Other features of flexible mortgages might include:

Advantages of Flexible Mortgages

  1. Suitable for self employed people who have a volatile source of income
  2. Can be useful in times of hardship e.g. for a couple having a child, one can stop payments.
  3. If your income is better than expected you can use it to pay off your mortgage early allowing lower interest payments


Disadvantages of Flexible Mortgages.

  1. Deferment of payments may lead to financial problems merely being delayed.
  2. If payments are deferred it will involve higher payments in the long term.
  3. If you are unlikely to use the features of overpayment followed by underpayment. Then this mortgage is probably not the best solution because you should be able to find a cheaper standard mortgage.


Often Flexible mortgages are known under commercial names such as

The Alliance & Leicester offer Flexible Mortgages combined with other traditional mortgage deals

See also:


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Types of Mortgages UK

1. Variable Mortgage

2. Fixed Rate Mortgage

3. Capped Mortgage

4. Self Certification Mortgage

5. Cashback Mortgage

6. Flexible Mortgages

7. Current Account Mortgage

8. Interest Only Mortgage

9. Offset Mortgage