Flexible Remortgage

A flexible remortgage has been designed in light of the demand by borrowers to be able to exert more control over their finances. In general, a flexible remortgage allows you to make overpayments, underpayments, borrow more money and even take payment holidays.

 

These features can be of huge benefit to many borrowers. Each flexible remortgage product will differ from one company to another and can in essence be whatever a lender wants it to be.

 

Across the board however, for a mortgage product to be described as flexible, it must incorporate the following three underlying features:

 

# Interest must be calculated on a daily basis.

# There must be an overpayment facility available without the borrower incurring a penalty, and also a facility to underpay if the individual’s circumstances warrant it.

# There must be the facility to take a payment holiday.

 

The benefit of interest being calculated on a daily basis means that as soon as a payment is made, the borrower will immediately start to pay interest on a smaller loan size. Many flexible remortgage products will offer far more to the borrower than the three basic features.

 

It is very common for the borrower to be provided with a chequebook in order to take advantage of the drawdown facility – this offers a flexible way to effectively debit the mortgage as a further advance. In many cases the lender will set a maximum limit on the total permitted borrowing. If this upper limit is exceeded then it is highly likely that the cheques will be refused payment.

 

A flexible remortgage has also been designed to suit a certain type of lifestyle. They can accommodate changes in our lifestyle and changes in our working environment with more flexibility. As previously mentioned, most flexible mortgages will have a payment holiday feature. This can be particularly attractive for couples starting a family and those taking time out of work for study.

 

Making regular overpayments could of course mean that the mortgage can be paid off early. This may seem particularly attractive to those anticipating a significant rise in income and thus being able to afford more on the mortgage repayments each month.

 

Traditionally flexible mortgages have appealed to those borrowers with experience of being homeowners. However, this is now changing with more first time buyers being attracted to the various different features offered.

 

Simply start by completing the remortgage form by clicking here.