Mortgages: Flexible

Flexible mortgages do what they say, they allow a bit of flexibility. So, instead of being tied down to the same mortgage payment for the whole term, they allow you to overpay (usually up to around 10% of your mortgage) when you have a bit more cash, and underpay if you should need a bit of a breather. However, you should really only underpay if absolutely necessary, as you'll simply be increasing that mortgage debt even more. You'll also usually have to have to have built up a reserve through overpaying, first.

Although the idea of overpaying on your mortgage may not appeal (after all, most mortgage payments are large enough as it is) with interest being calculated on a daily basis overpaying could save you thousands of pounds over the term of your mortgage. Overpaying on your mortgage is therefore usually well worth doing, if you can afford it. What's more, a large number of standard mortgages have a degree of flexibility, so it's worth asking your mortgage lender how flexible your mortgage deal is.

Next article: Current Account

Published on November 22, 2006