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A flexible mortgage allows
you to over-pay, underpay and take payment ‘holidays’
without incurring any penalties. Any over-payments can be used to
build up a cash-reserve which can be used at a later date to reduce
future mortgage payments or can be drawn-down if cash funds are
required in the future. Most flexible mortgages have the interest
calculated daily so that the capital balance is reduced and interest
charge recalculated immediately. Overpaying on your mortgage can
lead to your mortgage being paid off sooner and thus, can save thousands
of pounds in interest. Many lenders now offer a combined flexible
mortgage and current account, which enables borrowers to off-set
any savings and investments against their mortgage debt. These schemes
also offer full banking facilities such as cheque book, debit and
credit cards.
(UNDER PAYMENTS, OVER PAYMENTS & REPAYMENT HOLIDAYS WILL BE SUBJECT TO ANY AMOUNTS THAT YOU HAVE PREVIOUSLY OVERPAID).
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