Flexible mortgages could save homeowners thousands

11 January 2006
Taking out a flexible mortgage could save you years in repayments.

According to website moneysupermarket.com homeowners who consider a flexible mortgage, where they can make overpayments, underpayments and even take a payment holiday, can really get a hold on their finances.

Research conducted by the website revealed that with 80 per cent of the top ten lenders offering flexible options and with hundreds of pounds to be saved, it makes sense to overpay if possible.

The website also showed that even overpayments of £75 a month, can shave 57 months off a mortgage. Not to mention the saving of the £14,200 that would have been paid in interest.

Louise Cuming, head of mortgages at moneysupermarket.com said overpaying on a mortgage not only means paying off debt quicker but also means that less interest will be paid on the mortgage overall, leaving more time and money for holidays and extras.

"It is widely expected that interest rates will fall in the next coming months. Anyone on a variable flexible mortgage is likely to reap the rewards with a rate cut and could look to use any savings made towards overpaying their monthly repayments," she said.

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