Flexible Mortgages

If you choose a ‘flexible’ mortgage, it will generally mean that there is scope for you to make both overpayments and underpayments in the course of the mortgage term. For example if a couple are both working and may not yet have children, they may have an amount of surplus income which it would be sensible to use for overpayments into a flexible mortgage. The payments in excess of the basic subscription are credited against the debt and reduce the amount which will need to be paid at a later date. The sooner such extra amounts are paid the more effective they will be in enabling lower payments later or a reduced instalment in later years.

It is important to check whether there are conditions limiting the number or the amount of overpayments, and whether there is scope for occasional larger lump sum payments when circumstances allow. In addition there may be a penalty of some kind payable for overpayments. These factors need to be compared in order to decide on the best flexible mortgage deal.

It is important to check as well whether there is a facility for underpayment, or a payment holiday, in case of future need.

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