Your home may be repossessed if you do not keep up repayments on your mortgage.
Flexible mortgages recalculate the outstanding capital and interest (the amount you owe) on a daily basis. This allows you to make overpayments when you have money to spare, and see an immediate reduction in your loan.
Some also allow you to make underpayments when finances are tight, which will increase the interest you have to pay in the long term.
They may even allow you to take repayment holidays – a complete break from making payments as long as a reserve amount of money is in your account.
Any unpaid interest will be added to the outstanding mortgage; any overpayment will reduce it. Some flexible mortgages have the facility to draw down additional funds, to a pre-agreed limit.
This article (Flexible Mortgages) is intended to provide a general appreciation of the topic and it is not advice.
Mortgages by Mcateer Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Mortgages by McAteer Ltd is registered in England & Wales no. 1222611. Registered Office at 82a Lytham Road, Fulwood, Preston, PR2 3AQ.
The information on this website is subject to the UK regulatory regime and is therefore targeted at consumers in the UK.
Copyright © 2021 Mortgages by McAteer Ltd