A flexible mortgage offers a more adaptable approach than a traditional fixed-schedule deal. It can give you room to overpay, underpay or take a break when life changes.
Key features
- Daily recalculation — capital and interest are recalculated daily.
- Overpayments — pay extra when you can, and see an immediate reduction in your loan.
- Underpayments — some deals let you pay less during tight periods, though this can increase interest over the long term.
- Payment holidays — take a break from payments, with a reserve maintained in your account.
- Additional funds — draw extra within pre-agreed limits, as a safety net for unexpected costs.
Using it wisely
Flexibility is useful, but plan for the long term. Unpaid interest during underpayments or payment holidays is added to your mortgage, while overpayments reduce it. If your deal lets you draw down extra funds, use that feature carefully and within the agreed limits.
Important — please note
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages, such as commercial buy-to-lets, are not regulated by the FCA.
This article is general guidance, not personal advice. For a recommendation based on your own circumstances, please get in touch.