Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgage Glossary
- Mortgage Glossary Choices:
- 100% mortgage
- Arrears
- Buy to let
- County Court Judgements
- Defaults
- First time buyer
- Flexible mortgages
- Individual Voluntary Arrangements
- Keyworker mortgages
- Let to buy
- Non status
- No deposit mortgage
- No proof of income
- Self build
- Self certification
- Self employed mortgage
- Underpayment
Underpayment
If your income is erratic and some months you can pay more mortgage repayments than others, a flexible mortgage may help.
It allows the borrower to make both over and underpayments into the account.
Usually this type of mortgage will also calculate interest daily, enabling you to see an immediate impact of any overpayments that you make.
Some lenders may also offer the ability to operate your mortgage account as a bank account, with the option to make withdrawals.
When considering taking out a Flexible Mortgage , it is always prudent to consider some of the downsides, such as
• Flexible Mortgages tend to have a higher Interest rate than non-flexible.
• Full flexibility only becomes available afetr a probationary period, and not all Flexi-mortagages are equally flexible.
• Flexible mortgages require a certain amount of financial discipline. By using the underpayment option or taking payment holidays, the amount not paid remains outstanding and will be added to the total ammount owed - on which interest is charged.