A Flexible or ‘lifestyle’ mortgage is designed to let you make extra repayments when you have extra money, and to reduce or even skip payments when necessary. Flexible mortgages are those loans that let the borrower increase or decrease the amount of their mortgage repayments within specific limits.
Who should consider a Flexible Mortgage
There are an increasing number of customers who want a new way of looking at mortgages. Some feel constrained by the rigid structure of a traditional mortgage especially if it doesn’t fit their lifestyle.
Flexible mortgages are likely to be more suited to borrowers who may see their income fluctuate with the possibility of increases that can be used to over pay or drops in income that may require under payment.
A profession that has the potential of fluctuating cash bonuses is a good example of a situation where the bonuses can be used to over pay the mortgage and therefore reduce the cost the overall loan. Many people believe that reducing personal mortgage debt is a sensible and worthwhile investment and for those people the Flexible mortgage offers an avenue to achieve that.
For borrowers who are confident of their overall income but unsure on a monthly basis when that income will arrive the feature of under payment can be a useful facility. It helps if you are not being penalised when you want to miss month of your mortgage repayments – although even the Flexible mortgage will have some restrictions on when these under payments can occur. However, borrowers who for instance know that every January sees a fall in their business before it picks up in February, may be able to find a Flexible mortgage that accommodates that pattern.
The Flexible mortgage is often linked in promotions to the changing social and economic structure of modern life. Workers are more likely to change profession now than they used to be which is only one aspect that Flexible mortgages seek to address. Lenders are keen to make sure that they can continue to provide mortgage products that fit many types of borrower and certainly for some Flexible mortgages will be more suited to their situation than other types of mortgage.