Flexible Mortgages

Over the past few years, lenders have introduced flexible mortgages that enable you to vary your monthly repayments. You typically have the option of underpaying, overpaying or even taking a payment holiday.

If your financial circumstances temporarily change for the worse, you might have the need to pay less, and the good thing about a flexible mortgage is you won't be penalised in these circumstances. Conversely, if your finances are healthy, you may feel that you can make larger payments. The obvious advantage of overpaying is your outstanding loan will reduce more quickly, cutting your monthly payments in the long run.

A flexible mortgage might be the right choice for you if you are likely to use these features, for example if you're self-employed and have a variable income. However, if you're unlikely to use these features, then a less flexible mortgage may be cheaper for you.