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A Flexible Mortgage allows you to repay capital early, take back some cash you have paid in and postpone payments. Some are run as substitutes for current and savings accounts, so all your money is working to minimise interest on mortgage.
If you are looking for flexibility in current mortgage market, there are two important facts to bear in mind. First, majority of flexible mortgages tend to charge higher rates than those available on more conventional mortgage deals.
Secondly, there is little difference between mortgages marketed as fully flexible and conventional mortgages which are offering an increasing number of flexible features. So unless you want to use full range of features offered by a flexible mortgage, you may find level of flexibility you are after on a conventional deal at a much better rate.
Generally you can choose to have a variable or discounted rate or sometimes a combination a variable and fixed rate. By choosing to take part of your mortgage at fixed rate allows you flexibility to make overpayments to variable rate option during fixed rate period without any penalties.
A truly flexible mortgage should have all of following options:
Interest is calculated at least monthly, preferably daily.
Overpayments are allowed penalty free. You can take payment holidays. You can make underpayments.
You can draw down any unused facility.
You may freely reprint this article provided author's biography remains intact:
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.