MORTGAGE OPTIONS
Flexible Mortgages
Mortgage features that may allow you to adapt payments as your circumstances change.
How flexible mortgages work
Flexible mortgages commonly recalculate the outstanding capital and interest daily. This can allow overpayments to reduce the balance and interest more quickly.
Some products also allow underpayments when finances are tight, which can increase the interest payable over the longer term. Others may offer payment holidays, provided an agreed reserve or sufficient previous overpayments are available.
Additional flexibility
Depending on the lender and product, you may be able to draw down additional funds up to a pre-agreed limit. Any unpaid interest is normally added to the mortgage balance, while overpayments reduce it.
The features, restrictions, charges and eligibility rules differ between lenders, so it is important to understand how using flexible options could affect the mortgage term and total amount repayable.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
