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.

Flexible mortgages are fast becoming most popular way of taking out a new mortgage. The reason for this is that this type of mortgage allows you to take control of your mortgage and not other way round.

Unlike some traditional mortgage loans that still charge mortgage interest on an annual basis, fully flexible mortgages calculate interest daily, which means that any overpayments you make are immediately credited against your loan, thus reducing your interest costs. It means you get maximum benefit from your overpayment benefits immediately, since you don't need to wait for an annual interest calculation.

Many self-employed people whose income varies from one month to next find flexible mortgages particularly 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.

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".

This gives you flexibility to manage your mortgage payments to suit your cash flow needs as your circumstances change. These Flexible Mortgages allow 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.