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Flexible mortgage solutions

Want flexibility in your mortgage?  Search the market for the best flexible mortgage options available using the form on this page. 

Having a degree of flexibility is important in any mortgage.  Commonly, borrowers seek the ability to switch lenders without incurring an early redemption fee for remortgaging after the introductory offer on your mortgage ends.  There are some mortgage products on the market that enable borrowers to take greater control over their finances by offering flexibility on monthly repayment options.  These flexible mortgages are often called Lifestyle mortgages, or Aussie style mortgages, as these mortgage types were first introduced in Australia, where they are very popular.

Flexible mortgages are designed to enable borrowers to make regular overpayments, either up to a set flat amount per month or year, or up to a certain percentage of the total mortgage value per year.  Once a reservoir of overpayments has been built up, many flexible mortgages allow borrowers to take payment breaks, or to reduce monthly payments until the reserve has been used up. 

Flexible mortgages are well suited to those whose income is irregular, such as freelancers, or those whose income is bonus or commission-based.  Borrowers who regularly overpay and do not take payment breaks can reduce their mortgage length and total cost by a substantial amount; when used in this way, a flexible mortgage offers great savings potential.

The most important aspect of a flexible mortgage is to ensure that your mortgage interest is calculated daily.  Traditionally, lenders calculated mortgage interest rates annually, which results in the total interest outstanding on your mortgage being reduced only once per year after 12 monthly payments have been made.  If you are overpaying regularly on a mortgage that calculates interest annually, the outstanding interest owing will only be figured once per year, whereas if your interest in calculated daily you will immediately see the benefit of having overpaid, in the reduced outstanding amount. 

Flexible mortgages are generally offered at a slightly higher rate in return for the flexibility offered, however when used to their best advantage, the benefits of overpaying on a flexible mortgage can far outweigh the cost of paying a higher rate.  To compare the best flexible mortgage options available, complete the form on this page for a fast, no-obligation quote on the most competitive deals available from UK lenders.