Flexible Mortgages

Flexible mortgages offer you the ability to amend your monthly payments to suit your needs. This is an additional feature over the standard Variable Rate and Fixed Rate Mortgages options.

It gives you the flexibility to manage your remortgage payments to suit your cash flow needs as your circumstances change. Flexible Mortgages allow you to make ovvr payments, have a continous drawdown facility or even take payment holidays. Flexible mortgages would also have no early repayment charges allowing you to repay the debt at any time with no exra cos. This could be an advantage if you expext to receive a lump sum of money in the future for example inheritance or dividends from investments. Some are run as substitutes for current and savings accounts (offset mortgages shown below) so all your money is working to minimise interest on the mortgage.

Offset Mortgages

Offset mortgages are becoming hugely popular, especially amongst the higher rate tax payers as they allow you to offset certain payable interests.
The basic concept is that as well as borrowing money from the mortgage lender, you have savings or deposit accounts with them. This enables you to offset savings interest received for mortgage interest payable. For example; you take out a mortgage for £100,000 with a mortgage lender on an offset mortgage product. You are also given a savings account to which you deposit £20,000. You earn no interest on the savings deposited but you also pay no interest on the equivalent amount of the mortgage. You would therefore only pay interest on £80,000 and not £100,000.