For example, if you are self-employed or work on short-term contracts, there's a good chance your ability to repay will vary. With a flexible mortgage you can overpay when cash comes in (and save money on interest payments on reduced amount) and reduce your payments or re-borrow some cash when you have bills to pay or when you are in-between jobs.

Flexible mortgages may also suit you if you're about to have children. For example, if one of you is going to take a career break to bring up children, a flexible mortgage can be used to reduce financial strain over this period of lower income and higher expenditure.

Flexible Mortgages are sometimes not available to some customers. For example, those with an adverse payment history, those on DSS benefits, those wishing to acquire property which is not their main residence.

Flexible mortgages may not be for everyone. It all depends on how you use features of a flexible loan. Nothing comes free, and flexibility costs – and while flexible rates have come down in last few years, they still can't compete with cheapest discounts being offered on standard mortgages. This is because flexible loans were designed for longer term, so to get best use out of them you need to hold them for longer term and use all features they offer.

The most common requirement people have with a flexible mortgage is simply ability to make penalty free overpayments. If this is only flexible feature you want, a penalty-free mortgage will be just as suitable as a flexible mortgage and so you should consider both options.

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Many self-employed people whose income varies from one month to next find these products helpful. They can make overpayments when earnings are at annual peak and cut payments when earnings fall again. Some flexible mortgages allow you to withdraw sums you have overpaid into your mortgage account for emergencies.

Borrowers will usually have to build up a reserve through overpayments before being allowed to lower or miss payments. The benefit with a flexible mortgage is that many lenders offer rates that are calculated on a daily basis. The advantage to this type of mortgage is that even by overpaying mortgage by a small amount on a regular basis, it can reduce your mortgage term by years

Some flexible mortgages operate as both a current account and a mortgage account. The advantage of a flexible mortgage is that all money is controlled within one account and savings can be used to offset debt. With flexible mortgages interest is only paid on balance outstanding at end of each day, leading to less overall interest payments.

Most flexible mortgages follow lender's standard variable rate, although a few lenders offer short-term discounts. The interest charged on a flexible mortgage is usually high compared to a short-term special offer rate, such as a fixed rate or discount.

To get maximum benefit from a flexible mortgage you will need to actively use flexible elements of loan, otherwise there is little point in taking out this type of mortgage.

Your home is used as collateral for flexible mortgage, so if you fail to make repayments on Flexible Mortgage lender can take procession of your home and resell it to cover debt.

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