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Flexible mortgage
Flexible mortgages have been designed to suit the lifestyle of homeowners. There are a number of different schemes currently available, many of which contain some or more of the following features:
You can make extra payments to your mortgage at anytime without any penalty. This means that you could pay your mortgage off earlier than with a traditional mortgage.
You could save thousands of pounds in interest as the interest is calculated on a daily or monthly basis. Traditionally, interest has been calculated annually which means that any capital repayments do not have immediate effect on the interest payable. When charged on a daily or monthly basis capital repayments will reduce the interest charged regularly throughout the year.
These types of mortgages should not be confused with CAM's (Current Account Mortgages). Mortgages with features such as overpayments, underpayments, payment holidays, drawdown facilities (reborrowing monies overpaid) and mortgages that are completely redemption penalty free are often referred to as flexible mortgages.
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