Finding The Best Flexible Mortgage Uk Deal

Finding The Best Flexible Mortgage Uk Deal



Finding the​ Best Flexible Mortgage UK Deal
The best flexible mortgage UK is​ the​ one that works with the​ needs of​ the​ individual borrower .​
Flexible mortgages are home loans that allow some deviation from their repayment schedule and allow underpayments,​ overpayments,​ repayment holidays and interest charged on​ a​ frequent basis .​
This article will look at​ each aspect of​ a​ flexible mortgage and highlight what makes the​ best flexible mortgage UK deal.
Overpayments
The vast majority of​ flexible mortgage borrowers make overpayments on​ their mortgages .​
The earlier that you​ make the​ extra payments in​ your mortgage term,​ the​ earlier your mortgage will be paid off .​
Even by making slightly higher monthly repayments will enable you​ to​ repay your mortgage loan quicker .​
For example,​ on​ a​ £70,​000 mortgage charged at​ 6.2%,​ giving up your weekly large latte at​ £2.80 and putting that money towards your mortgage instead,​ would pay off the​ mortgage 1 year and 5 months early!
Some flexible mortgage lenders state a​ minimum overpayment of​ £25 per month and a​ maximum overpayment of​ 10% of​ the​ outstanding balance on​ completion.
Overpayments can also be made by lump sum payments on​ an​ ad hoc basis.
The best flexible mortgage UK is​ one that allows you​ to​ overpay at​ any time without penalty.
Underpayments
Underpayments can occur when you​ have made some overpayments .​
The underpayment option of​ a​ flexible mortgage is​ useful if,​ for example,​ your finances have become stretched .​
You can then choose to​ underpay for a​ few months until your finances have settled down.
The best flexible mortgage UK deal allows underpayments straightaway.
Payment Holiday
Some flexible mortgage deals allow you​ to​ take a​ complete break from making mortgage payments for up to​ a​ year .​
This could be useful if​ you’re thinking of​ starting a​ family or​ taking a​ sabbatical .​
You have to​ have built up sufficient overpayments to​ cover the​ period you​ take off and some mortgage lenders may only let you​ take a​ couple of​ month’s payment holiday each year
The best flexible mortgage UK deal allows you​ to​ have payment holidays for up to​ a​ year.
Borrowing Back
Borrowing back overpayments,​ instead of​ taking out a​ loan,​ makes sense if​ you​ need extra cash for any reason .​
You often have to​ build up a​ reserve of​ overpayments against which you​ can borrow and there will probably be a​ ceiling on​ the​ overall amount you​ can borrow through your original mortgage .​
The great aspect of​ mortgage overpayments is​ that rather than putting any spare cash into a​ saving account and earning a​ small rate of​ interest,​ the​ amount you​ overpay is​ taken off your mortgage so you​ are effectively earning the​ mortgage rate on​ your savings.
Some flexible mortgage lenders let you​ withdraw overpaid money directly using a​ cheque book or​ a​ debit card and others let you​ borrow money as​ the​ value of​ your property increases.
The best flexible mortgage UK deal allows easy access to​ funds.
Interest Charges
Unlike some traditional mortgages that still charge mortgage interest on​ an​ annual basis,​ flexible mortgages are calculated on​ a​ monthly or​ daily basis .​
This means that any overpayments you​ make are quickly credited against your loan,​ so you​ are immediately paying interest on​ a​ smaller amount of​ debt,​ thereby saving you​ money in​ interest charges.
The best flexible mortgage UK deal calculates interest on​ a​ daily basis.
Conclusion
The modern mortgage market has become more liberal and creative,​ and therefore this has led to​ an​ increase in​ the​ choice and range of​ flexible mortgage packages being offered to​ borrowers .​
Due to​ so many flexible mortgages to​ choose from,​ an​ independent mortgage broker can advise you​ on​ the​ best flexible mortgage UK deal for your needs.




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