Flexible Mortgages: What to look for
Interest charged daily
This is one of the major advantages of a good flexible mortgage. Most traditional mortgages calculate the interest charged on a mortgage at the end of the year, or at best the end of the month. The problem with this is if you pay capital off early, interest charges do not reflect the reduced capital until up to a year later. Cumulatively, this adds up to very significant interest being charged on money already paid back. By charging interest on a daily basis, flexible mortgages only charge interest on the amount borrowed at any time. This saves thousands if regular overpayments are made.
Withdrawal facility
Many flexible mortgages will allow you to draw further funds from your mortgage when you need them, without the need for any further authorisation. These withdrawals are simply added to the mortgage debt, so allowing you to borrow at your mortgages interest rate.
Some lenders take this facility to it's logical conclusion & actually issue you with a cheque book, allowing you to use your mortgage as an all encompassing bank account .
The lender will set a predefined limit to the amount you can borrow, normally up to 95% of your property's value.
Over & Underpayment facility
A quality flexible mortgage will allow you to make overpayments as often as you like, whether they be lump sum payments you make every year, additional payments every month or a combination of both, without applying any penalties. Furthermore, some lenders will allow you to take 'payment holidays' of up to six months, providing you've built 'credit' up through previous overpayments. This can be especially useful for the self employed, whose incomes tend to hit peaks & troughs.
We accept remuneration on a fee basis and/or a commission basis. This will be agreed with you at the outset. We would normally charge a standard £ 300.00 for our services, this will be waived if a life assurance, critical illness, income protection or similar policy is arranged where the commission value is £ 300.00 or more. If we agree to work on a fee basis in place of, or together with commission, we will provide you with a separate fee agreement confirming our charges and any related expenses before carrying out any chargeable work. Details for the payment of our fees are confirmed in the fee agreement.
We reserve the right to charge you a fee, without the need for a separate fee agreement, if you subsequently cease to pay premiums on any policies we arrange for you. This could apply for a period of up to four years and will reduce pro rata in line with the commission we are obliged to return to the Product Provider. The maximum amount of the fee will be no more than the amount of commission disclosed in the illustration.
Your home may be repossessed if you do not keep up repayments on your mortgage.