Best Flexible Mortgages

February 25th, 2008 | by admin |

Many homeowners are looking for a degree of flexibility in their mortgage payments. A good flexible mortgage should have the following features:

Daily Interest Calculation. Interest is calculate daily rather than at the end of the year. This means that as you pay off your mortgage throughout the year, the interest payments are reduced.
Overpayment. This option allows you to make an overpayment, either as a lump sum or regular payment. This can be more beneficial than saving into a current account. The interest on a loan is greater than in a savings account. These overpayments can be used to pay off your mortgage quicker of they can also be used to build up an overpayment fund which will finance future periods of underpayment. Making faster mortgage payments
Payment holidays. The coop allow you to arrange a payment holiday for upto 6 months. This can be beneficial for particular events which are very expensive, such as having a new baby.
Further Advance. A further advance enables you to borrow extra amounts than the original amount. It is a way to remortgage and gain equity withdrawal.
The key to a good flexible mortgage is that there should be no hidden charges for early repayments or making extra payments

Mortgage Advice