A flexible mortgage (or ‘lifestyle’ mortgage) simply allows you some variations in what you pay and when you pay it. So you might fancy taking a month off repayments (perhaps you’ve just come back from holiday), or indeed you might pay an extra lump sum in because of a fat inheritance cheque for example! Another benefit is often the flexibility to move your payment date each month.
This sounds great- flexible mortgages certainly match up to the modern hectic lifestyle with unpredictable demands on our money, changeable jobs and the ups and downs of self-employment. If that’s you, or you just want freedom to dip in occasionally, then a flexible mortgage might be what you need.
This also often ties in with ‘offsetting’- allowing you to have your savings and mortgage account with the same company, which lets you offset the interest on your savings against your mortgage.
But don’t forget- your lender will want his pound of flesh somewhere- often that’s in a slightly higher rate overall. So if you can stomach losing flexibility, don’t dismiss older-style mortgages completely. If you’re a first time buyer, for example, you might prefer a cashback mortgage to pay for your first furniture.
Top flexible mortgages include Egg, The Woolwich and Virgin (the One Account). If your circumstances are changeable, a flexible mortgage will certainly save you from nasty penalties. But if you’d rather get your benefits elsewhere (a lower rate or money back), then shop around first.
