What are flexible mortgages?

Some mortgage schemes provide the consumers with a few options – either varying the monthly payments or combining the mortgage account with some other savings account. This is also called “offset” mortgages. This is a very useful option, if you want to close off your loan early.

Listed below are some flexible features (it is not necessary that they are only associated with flexible loans) which are becoming very popular. Look at them and select what is best for you:


This system allows you to pay more than your normal monthly installments and will provide you with two benefits:

► Your loan amount will reduce considerably and hence you will have to pay lower monthly installments.
► If you continue paying the high amount, the loan can be closed much earlier than your usual term.

Except for fixed rate mortgage (where you have to pay an early repayment charge), normal flexible mortgages do not charge you for making overpayments.


The principal is the total amount of money that you had borrowed. You can give the creditor a sum of money called down payment before taking the whole loan so that there will be a reduction in the total amount of money that has to be financed.


Interest is the amount that the kinder charges for the money that you have borrowed; it is usually called the interest rate.

Besides, the given rate, the creditor can also charge you points and additional loan costs – every point is one percent of the total financed amount and is paid along with the principal.

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