Flexible mortgages come in all shapes and sizes. The most basic flexible mortgage runs along similar lines to a standard mortgage but with a few extra facilities such as calculation of daily interest, ability to make underpayments, overpayments and payment holidays.

The interest rate can be discounted, fixed, capped or variable, but has big advantage that it is calculated daily or monthly instead of annually. This means that any capital repayment of loan will affect interest charged on outstanding balance immediately. By making regular overpayments, interest saved on mortgage over term can be quite significant.

Interest is usually calculated on a daily basis, so as soon as you have made a payment you are reducing interest payable. By having ability to make further payments means that by just paying a little extra every month could save you a tidy sum in interest costs.

Also, most lenders will allow funds to be drawn from account up to original mortgage balance or even allow payment holidays.

Some flexible mortgages will allow you to withdraw sums you have overpaid into your mortgage account to help deal with emergencies.

Being able to do this may help you cope with changes in your income or spending, and to reduce your outstanding commitments without penalty if you get a bonus.

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 their payments when earnings fall again.

Flexible mortgages are most suitable for people who have irregular incomes, or who are expecting a period of reduced income, or would like to reduce their mortgage more quickly.

Daily interest rate calculation means that amount you owe falls each month as a little more capital is paid off with each mortgage payment. Most flexible mortgages now offer daily calculation of interest, so changes to outstanding balance are taken into account immediately.

The flexible mortgage was originally designed to help homeowners take a more pro-active role in managing their debt. Since their inception they have increased dramatically in popularity.

Flexible mortgages allow you to tailor your mortgage to suit your lifestyle. A flexible mortgage allows you to make additional or lump sum payments in excess of your scheduled amount, enabling you to pay off your mortgage early. By reducing capital amount of your mortgage in this way, you are also reducing your monthly interest payments. You may take this money back at any stage or use it to take a repayment "holiday".

A flexible mortgage typically allows you to increase and reduce payments. This flexibility allows you to match your income patterns to your out-goings. If you repay extra each month you can reduce you mortgage balance and interest charged resulting in substantial savings being made.

Flexible mortgages are loans which allow you to increase or reduce size of your repayments within certain limits. This may help you cope with changes in your income or spending, and reduce your outstanding commitments without penalty.

Each lender has a different idea of what makes a mortgage flexible choosing to combine all or some of a set of flexible features. Flexible features include regular overpayments, lump-sum overpayments, lump-sum withdrawals and payment holidays. Customers may also be able to make payments weekly.