A generic name for a fairly recent arrival in the UK market. Flexible mortgages provide more options for borrowers than traditional mortgages.
The features available vary from lender to lender. The defining characteristics of flexible mortgages are their monthly or daily interest calculation (instead of the annual interest calculation methods of traditional mortgages) plus the ability to make overpayments without an early repayment charge at any time.
They tend to have a lower standard variable rate than traditional mortgages, and many allow you to underpay, defer paying by taking so called payment holidays, drawback overpayments, and to drawdown further advances at a beneficial rate.
Generally, flexible mortgages are for borrowers who intend to repay their mortgage early. Current account mortgages embody a further refinement of the principle of flexibility.
