The problem that most of the borrowers face while going to take out a mortgage is the type of mortgage they should choose. All types of mortgages including flexible mortgage have their own merits and demerits. Since mortgage is a long term financial commitment, a borrower should be careful about choosing the mortgage type. Otherwise, it will cause them to pay a lot of extra cash at the best and lose the property at the worst. In fact, flexible mortgage was first introduced in Australia in the early 1990s. Observing the success it achieved there, flexible mortgage was imported into the UK in 1995. Since then at has got immense popularity in the United Kingdom as it works as a better alternative to the traditional mortgages. Flexible mortgage is given this title because it offers flexibility in the terms and conditions. The best thing about flexible mortgage is that it keeps the monthly repayment within the affordability of the borrower. Some of the important benefits offered by flexible mortgage are: the provision of making overpayments (more than the stipulated amount) the facility to redraw (borrow back) any previous overpayments permission to underpay (less than the usual amount) To enjoy a payment holiday (you can stop repayments for a certain period, typically 3 to 12 months.)All these features help any borrower to manage the mortgage quite easily. It is because of these features flexible mortgage remains especially useful for the self-employed and those who live on a tight budget. For this group of borrowers flexible mortgage works a favourable option of getting on the property ladder. |
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