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Title:
Flexible Mortgage Guide

Word Count:
483

Summary:
In today’s ever-changing world, people need more and more flexibility
when it comes to borrowing and mortgages. With this in mind, more and
more lenders are offering what they term as ‘flexible’ mortgages.
However, the term ‘flexible’ can mean a lot of different things.


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Article Body:
In today’s ever-changing world, people need more and more flexibility
when it comes to borrowing and mortgages. With this in mind, more and
more lenders are offering what they term as ‘flexible’ mortgages.
However, the term ‘flexible’ can mean a lot of different things. If you
are unsure about which mortgages are flexible and what the benefits of a
flexible mortgage are, then this article might be helpful to you.

What does flexible mean?

Although there are a lot of mortgages that claim to be flexible, there
are some things that define a truly flexible mortgage. There are four
main characteristics you should look for when determining if a mortgage
is flexible. These are:

·    Being allowed to overpay
·    Being allowed to underpay
·    Being able to take payment holidays
·    Interest is calculated daily

Overpayments

One of the best features of flexible mortgages is the ability to overpay.
With traditional fixed repayment mortgages, there is no easy way for you
to pay more than your fixed repayment each month. If you have a flexible
mortgage, then you will have the ability to pay as much as you can each
month. This means that during the good months you can speed up the
process of paying your mortgage back. If you regularly overpay then you
can save yourself thousands of pounds in interest payments.

Underpayments
Underpayments are another useful feature of flexible mortgages, but they
should be used sparingly. If you are unable to make the repayment in a
given month, then you can just pay as much as you can, effectively
underpaying on your mortgage. Although this is good as it stops you from
defaulting, there are penalties involved. The more you underpay, the
longer the mortgage will last or the higher your repayments afterwards
will be.

Payment holidays

Payment holidays are similar to underpayments, but they let you
completely halt payment for a period of time. Although this might sound
appealing, there are usually restrictions. Lenders will not let you take
a payment holiday unless you have overpaid in the past, and after your
holiday you will have to overpay again to get the repayments back on
schedule. However, payment holidays are useful for people who are self
employed or who want to take a break from work for personal reasons.

Other benefits

Another benefit of flexible mortgages is the ability to borrow back money
from your mortgage. If you have overpaid in the past but are now in need
of extra cash to fund home improvements or some other purchase, then you
can borrow the money back that you have overpaid. Although you will be
changing your mortgage terms again, getting a loan at the rate of your
mortgage is the lowest personal loan rate you can possibly get.

If having flexibility and the chance to overpay and underpay is important
to you, then you should definitely opt for a flexible mortgage.

				
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