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.

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All your other debts, such as your credit cards or your personal loans are also linked into nest of products, and this allows you to repay all of your debts at mortgage rate, which is likely to be a lot lower than your pay rate on those borrowings.

A further advantage is that credit cards and loans remain unsecured borrowings even though they are paid off at mortgage rate, so if you can't keep up repayments on those your home is not at risk.

The people that will find offset mortgages very suited to them are people with volatile incomes, such as self-employed or people often paid in large bonuses. People with significant amounts of savings will also find offset mortgages useful.

If you do opt for an offset mortgage, especially one linked to a current account, you can maximise its benefits by keeping your cash in your account for as long as possible each month. With interest calculated daily, each day's credit balance can make a small difference.

The rate on an offset mortgage will be higher than cheapest rates available.

The benefit of offsetting feature is that you can always have access to your savings if you need them. So you can make them work to pay off your mortgage, and access them when you need to.

The advantage to offset mortgage is that feeling of being in debt is not as all encompassing as with a current account mortgage. However an offset mortgage is quite complicated and you need to make sure that your accounts are offset in best possible way to benefit.

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