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.

You may freely reprint this article provided author's biography remains intact:

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.

The flexible mortgage allows you to pay mortgage back quicker than your agreed monthly repayments stipulate. Traditional mortgages would charge you for repaying early, but with a flexible mortgage you can repay early, save on interest, and reduce total amount owing.

Truly flexible mortgages will allow you to underpay - however this will only usually be offered if you have overpaid enough to cover difference. In same way as you can with underpaying, if you are keeping up with repayments and have ideally overpaid, you will be able to payment holidays.

The flexible mortgage will not charge you for moving mortgage lenders as most traditional mortgages will. You are free to overpay, underpay and swap mortgage lenders without financial penalties.

There are no standard repayment methods. Each mortgage provider will specify extent of flexibility on its Flexible Mortgage and interest rate may be variable or fixed.

Before taking out a flexible mortgage, make sure you are aware of how you handle your finances. If you are inclined to raid your savings on a regular basis, a flexible loan is unlikely to suit you.

Most mortgage lenders offer an annual statement showing balance of account, number of overpayments you have made and how much interest you have saved.

Many flexible mortgage providers now offer tracker rates, so you can now enjoy elements of a flexible loan while following rise and fall of interest rate movements.

If you simply want to be able to make odd lump-sum repayment or to overpay on a regular basis, it may be a good idea to look at what else is on offer in mortgage market. As flexible mortgage becomes even more popular, many lenders are offering conventional mortgages with flexible elements.

You may freely reprint this article provided author's biography remains intact: