 Sam
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Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
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 Posted: Tue Jun 08, 2004 3:10 am Post subject: Flexible Mortgage |
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Flexible mortgage is a type of variable rate mortgage, which allows a borrower to make overpayments and underpayments without a penalty. It is also known as Austrian style mortgage.
Features of flexible mortgage are as following:
- It allows a borrower to make extra lump sum or monthly payments.
- The rate of interest is calculated in a monthly or daily basis.
- It allows a borrower to take payment holidays.
- It permits a borrower to make underpayments.
- It offers a much cheaper alternative to personal loans.
- Some lenders offer discounted, capped and fixed options as a part of the product.
- It allows drawdown facility.
- It allows a borrower to have a control over his finances.
Advantages of flexible mortgage are as following:
- It enables a borrower, to withdraw money up to a pre agreed borrowing limit or equal to the sum of over payments made previously.
- It is a cheaper way to borrow money than through personal loans or credit cards.
- A borrower can reduce his mortgage term by regularly making overpayments or by paying lump sum.
- Here the rate of interest is calculated monthly rather than annually. Hence a borrower can save thousands of pounds in interest repayments.
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