This is quite a new style of mortgage and one that is worth considering.

Typically the borrower will put in a larger deposit (not the usual 5%) and will then get a variable rate mortgage with a difference (some places will give you a lower than average variable rate).

As well as this type of mortgage being flexible, you can take payment holidays, also decide when you want to pay the mortgage off and if you require a loan you can borrow from your mortgage.

Normally rates are charged annually, but flexible rate ones are done on monthly, weekly or daily basis which is better for the borrower.

This type of mortgage is good for people who get bonuses or dividends and wish to reduce their mortgage. E.g. say a borrower pays £10000 to their mortgage normally that would only be reduced when that lender reviews their rate for that year, so a payment in January may not come off till November, with a flexible mortgage if comes off more or less straight away, saving the borrower money.

Many flexible mortgages have the facility where you can even have a payment holiday which if used properly can be quite advantageous. It is often in the interest of the borrower to pay off their mortgage as quickly as possible, if you know how much you are paying now for your mortgage or you have been told how much your mortgage will cost you per month, then get out your calculator, and work out how much it will cost you annually, and then times that figure by 10, whatever the answer is and I am sure it will be a shock to some of you, that end figure, is the amount of money you could save yourself if you paid off your mortgage 10 years earlier. Better in your pocket than the lenders.

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