What is a flexible mortgage?

The flexible mortgage is a recent addition to the mortgage industry - the a very welcome additions because it breaks the rules of the conventional mortgage in a number of ways:

Overpaying
You are free to overpay when and if you can - and to finish paying off your mortgage early. Traditional mortgages will charge you redemption penalties for repaying early, but with a flexible mortgage you can. It also means you’ll save on interest, and reduce the total amount you have to repay.

Interest Charges
Interest is calculated every day on flexible mortgages - so every time you overpay you’ll benefit immediately.

Underpaying
Truly flexible mortgages will allow you to underpay - but you may find that this has to be balanced by an element of overpaying so you are not behind with repayments at any point.

Payment Holidays
Payment holidays mean you can take a break from the mortgage as times like Christmas or in the middle of summer when you’re paying for a holiday. The same rules apply as to underpaying, you might need to have overpaid to be eligible for a payment holiday.

No Redemption penalties
You won’t be faced with redemption penalties if you want to change mortgage lenders - unlike with most traditional mortgages.

Reborrowing
Some flexible mortgages enable you to reborrow a portion of the loan, this is always easier to arrange if you have already overpaid.