Chromhome NUMBER ONE Success System

[Tommy Lee]

http://www.noss123.com/


 he term *flexible mortgage* refers to a UK residential mortgage that offers
*flexibility* in the requirements to make monthly repayments.

Typical features include the facility:

   - to make overpayments (more than the normal amount)
   - to redraw (borrow back) any previous overpayments
   - to underpay - less than the normal amount
   - to take a payment holiday - stop repayments for a period, typically
   3 to 12 months.

These features allow a flexible mortgage to be adaptable to individual
circumstances. This is especially useful for self employed borrowers and
those with a variable income. By way of example, borrowers whose income
includes a significant but irregular commission component might make use of
commission payments to make overpayments, thereby reducing the term or
enabling them to underpay at other times.

With traditional mortgages, borrowers often face large penalties for
additional capital repayments or if payments were not made on time.

History

The flexible mortgage was first successfully introduced in Australia in the
early 1990's leading to the phrase *Australian mortgage* being used to
describe this type of arrangement.

The concept was imported into the UK in 1995.

Offset mortgages
 *Main article: Offset mortgage*

An extension of this idea is to allow capital balance to be *offset* against
the debt balance to reduce the mortgage interest charged.
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