Head of Content
Mortgage Advisor & Director
What is a flexible mortgage?
A flexible mortgage works in the same way as a standard mortgage, but with additional benefits when it comes to versatility.
There are many options, and it may not always be straightforward to decide which is the best configuration for you. At Teito, we're a whole of market broker, which means we have access to more than 20,000 mortgages from over 100 lenders, including market-leading flexible deals. If you're ready to get started, applying is easy.
How does a flexible mortgage work?
There are various ways in which a flexible mortgage can work.
Daily Interest Calculations
Daily interest calculations mean that if you make an overpayment, this will be recognised straight away on your account, rather than the interest being calculated monthly or even annually.
Overpayments
Flexibility in terms of overpayments can save your thousands of pounds worth of interest. Many mortgages have strict rules on how much you can contribute in overpayments on a monthly or annual basis. If you opt for a mortgage offering flexible or even unlimited overpayments, you'll save money on interest payments and are more likely to settle your mortgage early.
There are mortgages that allow you to make overpayments on your mortgage and then retrieve the additional payment back if you need to. This option means you can make overpayments safe in the knowledge that if you have a sudden requirement, you won't need to increase lending, for example, on a credit card.
Payment Holidays
Some mortgages offer payment holidays of up to 6 months. The requirements will vary from lender to lender, however, if you've made overpayments you are likely to be able to take a mortgage payment holiday. This could be useful if you're, for example, having a baby or planning a wedding. Beware that during your payment holiday, your borrowing will continue to accumulate in line with the interest rate.
Underpayments
Certain lenders will permit you to make underpayments. This means that while you continue to make payments towards your mortgage, it is at a reduced rate. If you've made overpayments on your account and are up to date with payments in general, your chances are good for being accepted.
Mortgage Porting
Porting your mortgage to a new property is a valuable benefit offered by some lenders. Without incurring an early repayment fine or changing any terms, you may be able to switch your mortgage to the new property assuming the valuation is acceptable.
Apply for a flexible mortgage now
At Teito, our team of experts have helped many people like you to get the best deal possible on their flexible mortgage. Whatever your situation, we can help you to find your perfect mortgage. Applying is easy, complete our simple online form today to get started.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
