Understanding flexible mortgages

Thinking about taking advantage of flexible mortgage? Then, understand what it is and determine if it is your best option when buying a house.

10:04 17 June 2013

Flexible mortgage is one of the things that most banks and lending institutions offer to customers who are thinking about buying a house. This type of mortgage comes in different forms but their main similarity is that they allow the borrower to pay a different amount of money every month.

For example, borrowers who have unexpected expenses will be allowed to pay a small amount of money. They will also be allowed to pay bigger amounts if they got a bonus for example, or if they unexpectedly come into additional money (like inheritance).

Normally, both instances would incur substantial fees but with most flexible mortgage loans, borrowers are given a lot more control over how much to pay each month.

Some providers will also allow holiday breaks; meaning, you don’t have to pay any amount and you can even borrow back money if you have repaid a part of your capital in advance.

Keep in mind that different providers have different terms and conditions. Thus, it is important to read the fine print when you’re applying for flexible mortgage so you’ll know what you can expect to get.