|
Author: John Mussi Article source: http://www.directonlineloans.co.uk/. Used with author's permission.
Here is a useful flexible mortgage guide. Flexible mortgages are loans which allow you to increase or decrease the size of your repayments within certain limits. This type of mortgage is relatively new.
Flexible mortgages come in all shapes and sizes. The most basic flexible mortgage runs along similar lines to a standard mortgage but with a few extra facilities such as the calculation of daily interest, the ability to make underpayments, overpayments and payment holidays.
The interest rate can be discounted, fixed, capped or variable, but has the big advantage that it is calculated daily or monthly instead of annually. This means that any capital repayment of the loan will affect the interest charged on the outstanding balance immediately. By making regular overpayments, the interest saved on the mortgage over the term can be quite significant.
Interest is usually calculated on a daily basis, so as soon as you have made a payment you are reducing the interest payable. By having the ability to make further payments means that by just paying a little extra every month could save you a tidy sum in interest costs.
Also, most lenders will allow funds to be drawn from the account up to the original mortgage balance or even allow payment holidays.
Some flexible mortgages will allow you to withdraw sums you have overpaid into your mortgage account to help deal with emergencies.
Being able to do this may help you cope with the changes in your income or spending, and to reduce your outstanding commitments without penalty if you get a bonus.
Many self employed people whose income varies from one month to the next find these products helpful. They can make overpayments when earnings are at the annual peak, and cut their payments when earnings fall again.
Flexible mortgages are most suitable for people who have irregular incomes, or who are expecting a period of reduced income, or would like to reduce their mortgage more quickly.
But having a flexible mortgage is not just about repaying your mortgage early. It's also about tailoring your mortgage to suit your lifestyle. All flexible mortgages allow overpayments and most will allow you to make underpayments when finances are tight. They may even allow you to take repayment holidays - a complete break from making payments as long as a reserve amount of money is in your account.
For example, if you are self-employed or work on short-term contracts, there's a good chance your ability to repay will vary. With a flexible mortgage you can overpay when cash comes in (and save money on interest payments on the reduced amount) and reduce your payments or re-borrow some cash when you have bills to pay or when you are in-between jobs.
Flexible mortgages may also suit you if you're about to have children. For example, if one of you is going to take a career break to bring up children, a flexible mortgage can be used to reduce the financial strain over this period of lower income and higher expenditure.
Flexible Mortgages are sometimes not available to some customers. For example, those with an adverse payment history, those on DSS benefits, those wishing to acquire property which is not their main residence.
Flexible mortgages may not be for everyone. It all depends on how you use the features of a flexible loan. Nothing comes free, and flexibility costs - and while flexible rates have come down in the last few years, they still can't compete with the cheapest discounts being offered on standard mortgages. This is because flexible loans were designed for the longer term, so to get the best use out of them you need to hold them for the longer term and use all the features they offer.
The most common requirement people have with a flexible mortgage is simply the ability to make penalty free overpayments. If this is the only flexible feature you want, a penalty-free mortgage will be just as suitable as a flexible mortgage and so you should consider both options.
You may freely reprint this article provided the author's biography remains intact:
About The Author John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Supporting the UK Jewellery Industry
Many industries in the UK have suffered as a result of cheap imported foreign goods
and as a result of the strength of the pound against other currencies
How to Raise House Plants from Seeds Easily
The principal house plants which are easy to raise by sowing seeds are Aloe (succulent plant), Asparagus species, Begonia semper-florensundB...
Corporate Branding and Professional Logo Design
Any business with the minimum interest to be successful should concentrate on developing their corporate image and when I say "any business", I mean it, absolut...
A Winning Game Plan
You want to sell your products or services, and that means
good money management, top quality products or services,
and hard work on your part. But, for REAL ...
Treatment of Heart Disease with Coenzyme Q10
Studies on congestive heart failure have demonstrated a strong correlation between the severity of heart failure and the degree of CoQ10 deficiency. The lower t...
Keep Your Navigation Consistent!
One of the single most important aspects of effective navigation is consistency. Why? There's a simple reason. Visitors want familiarity. They are more comforta...
The No Diet Way to Lose Weight and Keep it off!
Say no to diets and get into a way of life! Weight loss without diets is the only proven way to lose weight and keep it off.
How to Save for A Down Payment
How to Save for a Down Payment -- the First Step toward Owning Your Own Home! It's easier than you might think to Save for a Dwon Payment -- usually just an aw...
Multi Family Property Living
If you've ever been married and going to school at the same time, chances are you've had the wonderful experience of living in a multi family apartment or house...
What Is True Egalitarianism?
The founding fathers of the United States considered egalitarianism to be a central value in framing the constitution. Egalitarianism is based on tolerance for ...
Keen To Be Lean? – Some Metabolic Musings
Metabolism is the process by which your body changes food into living tissue and changes living tissue into energy and waste products. Metabolic Rate is the spe...
Do You Have Diabetes? Symptoms Of Diabetes And How To Address Them
Diabetes usually runs in the family, so it's best to know early on if you have it. The common symptoms experienced by someone who has diabetes include...
How To Get Free Advertising By Giving Away Online Content
Giving away content is a powerful way to get free advertising.
For example, give other people permission to use your article
on their web site or in their e-zin...
Simple Living in a Materialistic World
Making your family happier and more content doesn't have to be difficult. It may be as simple as what you cut out of your life.
Andropause and DHEA
DHEA helps men suffering from Andropause. Everything you need to know about this male hormone.
How to Measure Return on Investment for Email Marketing
Simple, yet effective methods of calculating return on investment to ensure your email marketing program works!
Trade Show Videos Need to be Planned
So you are exhibiting at a trade show and you want to show everyone your latest marketing video? Trade show videos are a specialised promotional tool and need ...
How to Buy a Baby Crib Online
Are you thinking about buying a baby crib online? This article reviews some of the basics in terms of selecting a reliable online store. It also highlights tech...
Career Killers to Avoid
Many professionals and managers are so involved in day-to-day crises and fighting fires that they forget about a key leadership characteristic: self-management....
Goal Setting & Go Getting: No Other Way
Do you know how most people set their goals but never get their goals? Here are some tips for you to get your goals everytime.
Natural Skin Care Mask
Healthy skin is one of the most common health and beauty concerns for people today, and rightfully so. Our skin is our bodies largest organ, and when our skin d...
Interactive Decor Accessories – Make Your Home Fun!
Learn about interactive decor accessories and how they can make your home more fun when you entertain.
How To Write A Great Radio Ad!
You've bought the schedule and now you're ready to write your own radio spot.
But before you do, put down that pencil and read this article first!
Credit Cards for Home Business
It is wise for you to have a company credit card like a VISA card. How can you find the least expensive bank card for your business? You may decide to use a V...
|
Print this page