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Flexible Mortgages & Remortgages

Picking a mortgage or remortgage is probably one of the biggest financial decisions that most of us ever have to make. If you currently have a mortgage, it may not be the best one for your particular personal and work situation. As a result, you may be able to save a considerable amount of money by remortgaging onto a flexible mortgage product.

With more and more people becoming their own boss, going freelance, or working as consultants or contractors, the mortgage industry has started to realise that mortgage borrowers require more flexible mortgage and remortgage arrangements which can adapt to their own individual and changing circumstances.

There are various types of flexible mortgage, and not all of them offer the same range of options.

Some flexible mortgages allow you to make overpayments to repay the mortgage debt ahead of time. As a result, any bonus payments from your work, a lump sum inheritance, or any other type of windfall can be used to reduce the amount you owe on your mortgage straightaway. Also, if you receive a pay rise, you could choose to increase your monthly mortgage payments so that you are making a small regular overpayment each month.

The overpayments you make build up as credits on your mortgage account and can be drawn out again at a later date for any short-term credit needs like paying for a holiday.

There are also flexible mortgages that let you reduce your payments or stop them altogether (within certain limits of course).

With traditional mortgages, the banks and building societies require you to make monthly payments every month throughout the term of the loan. Flexible mortgages, on the other hand, let you adjust or suspend payments. Typically with a flexible mortgage, once you have paid the first six months' mortgage repayments, you are usually allowed to take a two-month mortgage payment holiday each year, so long as you have sufficient equity in your property or have built up enough credit with overpayments. This can be very useful at times of the year when money is a bit tight, for example at Christmas time or during the summer holiday season.

Another advantage of a flexible mortgage is that a lot of flexible mortgages calculate interest daily (instead of monthly or annually as is the case with a lot of other more traditional mortgages). This can lead to significant savings in the long run.

Flexible mortgages are not just something to be considered when you are buying a new home. They could also be ideal if you already have a mortgage and are not looking to move home, but would still like to cut costs and improve the flexibility of your mortgage terms by remortgaging with a flexible remortgage product.

Remortgaging to a flexible mortgage gives you all this extra flexibility and can also provide an opportunity to release some of the capital tied up in your house. By releasing some of the equity in your property when you remortgage, you can pay for anything, such as a new car, a boat, exotic holidays, or school fees.

You can also get rid of existing credit card and personal loan debts, with their high rates of interest, and consolidate them into your new flexible mortgage. This represents yet another way that a flexible remortgage can save you money.

If you would like to find out whether a flexible mortgage could suit your own situation, don't delay. The longer you do, the more you might be paying in unnecessary interest. Complete our online flexible mortgage enquiry form today and we will arrange for a professional mortgage consultant to contact you to discuss your options in more detail.

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