Flexible and Offset Mortgages
Flexible and offset mortgages are a relative newcomer to the UK mortgage marketplace, but have proved to be very popular.
It is estimated that around 20% of borrowers now have some element of flexibility in their mortgage deal, from simple overpayment options to a full current account set up.
What's the fuss about?
The basic difference between an flexible mortgage and a regular one is flexibility in payments. Pay more, or less, each month according to your financial circumstances. If you have extra funds available, you can overpay to reduce your debt.
Some versions also combine your personal loans, credit card debt and personal savings into one large - but cheap - 'overdraft' to simplify your payments and reduce your interest charges. This is known as 'offset' - your savings will reduce your outstanding mortgage balance, while your debts will be charged at the lower rate associated with mortgages.
Next we look at some of the most common features available - although the details will of course differ from deal to deal.
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