links to our MORTGAGES guide
flexible mortgages I
If you have been looking for a mortgage that gives you maximum financial
freedom, then look no further than the Flexible Mortgage. In short, this
type of mortgage allows overpayments, underpayments and the facility to take
payment holidays without incurring penalties.
Flexible mortgages are particularly suited to
anyone who can't be sure they'll always have enough cash when they need it,
due to the nature of their work pattern. The flexible option also offers
an efficient way to save, as interest on overpayments is calculated at the
mortgage rate you are paying. Some lenders also offer all-in-one accounts
that combine your current account with your mortgage.
Will a flexible mortgage work for you?
You could save money with a flexible mortgage if, for example, you are in
a position to overpay your monthly mortgage repayments from your income or
if you anticipate getting a lump sum in the future, perhaps from dividends,
an inheritance or other investments. A flexible mortgage can also give you
more financial stability if your employment is based on short-term contracts
or if you are self-employed and your income is irregular.
This type of mortgage is suitable only if the
borrower has a disciplined approach. Types of flexible mortgage There are
many different types of flexible mortgage these can be categorised
Standard variable rate (SVR) mortgages Variable
rates on flexible mortgages used to be prohibitively high, but many are now
in line with non-flexible products and are even discounted. Tracker mortgages
Tracker mortgages generally track the Bank of England base rate. Fixed-rate
mortgages These have a fixed interest rate for a set period, after which
the rate reverts to the SVR. Capped-rate mortgages With this type of mortgage,
you pay the SVR up to a predetermined limit. Above that, your borrowing rate
does not rise for a set period. Current account mortgages (CAMs) CAMs combine
your home loan with your bank account.
STEP - THE BUILDING REGULATIONS - OBTAINING BUILDING CONTROL
To compliment our Planning
Guide we have also produced a UK specific Specification Manual solely aimed
at the domestic/residential side of building. Are you completing your
own drawing plans for the Building Regulations as well? Why not obtain our
'Specification Manual' to assist you with obtaining Building Regulations
Approval as well. Alternatively you may have already secured Planning
Approval & just need this document.
here to find out more about our Specification
You pay interest at one rate, recalculated daily,
on everything you borrow. All the money that comes into the account immediately
reduces the total borrowing. If you would like to discuss the mortgage options
available to you or would like to consider ways of reducing your existing
mortgage borrowings, please e-mail or contact us to arrange a meeting or
use our online advice service.
Ask yourself the question: "How long ago was it that I arranged my mortgage?"
If the answer is "Years ago", now could be an excellent time to see if we
can help you arrange a better deal. Obviously, you don't want to pay more
for your mortgage than you have to! What it means to you Remortgaging means
changing your mortgage contract, and usually your mortgage lender too.
All you're actually doing is changing the terms
of your mortgage. You have to go through some of the same processes as you
would if you were moving home, but it should be less stressful. If right
for you, it is an ideal way to save money. The options You could opt for
a fixed or capped rate if you're anxious to control your budget, or a discounted
rate paying a reduced rate for a defined period to take advantage when interest
rates fall. Cashbacks offer a lump sum if you need some extra cash, perhaps
to carry out some home improvements or fund a family event.
Alternatively, you could plump for one of the
new-style tracker mortgages, where the rate you pay is linked to the Bank
of England base rate. Or you could consider a flexible mortgage, which offers
you the ability to make regular or lump-sum overpayments, take a payment
holiday, cut your repayments, reduce your repayment term and so on. With
so many choices available to you, how do you decide which option to take?
Your main consideration is the interest rate. If you are currently paying
at your lender's standard variable rate, then most special offers, such as
fixed, capped and discounted rates, will be able to offer you a cheaper rate.
Although you are not moving home, you will still have to pay for your legal
costs, unless the lender offers to pay them as part of your new deal. Local
searches are only valid for three months, so you'll probably have to get
another one of those done, too. Your new lender is also likely to want a
valuation carried out on your property.
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