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There are also several different types of mortgage agreement that may have flexible options included, such as offset mortgages and a variety of other interest rate deals.
These types of mortgages may ideally allow customers to:
- Make underpayments if they are a short of money at the end of the month
- Take payment holidays from their monthly mortgage repayments
- Make overpayments if they have received a bonus or commission at work
If you are self employed or rely on an irregular source of income a flexible mortgage deal may be for you, as your lender may allow you to make underpayments and overpayments depending on your income for the period. Although a flexible mortgage deal does have its benefits, there are a number of factors to watch out for before committing to an offer.
- There are a limited number of flexible mortgages out there as they are a relatively new financial product, therefore you may not be able compare as many mortgages as you need to in order to get the best deal.
- Your interest rate may be set higher if you have an irregular income, as your lender may see you as a bigger financial risk.
- As is also the case with any type of mortgage or similar financial product, these agreements require a great deal of long term responsibility and commitment
- Some mortgage lenders may restrict the level of underpayments and overpayments you make, and you should carefully consider the terms of an agreement before committing to it