Flexible Remortgage

Four Reasons Why You Should Consider A Flexible Remortgage

If you're thinking of remortgaging, it's worth considering a flexible remortgage. Flexible mortgages are becoming more popular and a wide range of flexible mortgage deals is available. Here are four reasons to get a flexible remortgage.

Varying Mortgage Payments

The big advantage of a flexible remortgage is the ability to change your payments to suit your lifestyle and financial profile. People who might benefit from a flexible remortgage include people who might want to cut back on mortgage payments because they have a young family. Older people might want a flexible remortgage to allow them to pay off their mortgage quicker and have a debt-free retirement. In addition, people with flexible income can benefit from a flexible remortgage. The reason for this is the ability to make underpayments when money is tight. There are many UK consumers who could benefit from that kind of flexibility. However underpayments and payment holidays could increase the mortgage term and/or the total amount payable.

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Another flexible feature provides the second reason to have a flexible remortgage. The ability to overpay on the flexible mortgage - either through occasional lump sum payments or a regular standing order - could help flexible mortgage holders to reduce their mortgage term from the standard 25 year term. Depending on the flexible mortgage lender you talk to (and, of course, on borrowers' financial profile) the estimates of the time The Right Mortgage For You Imageborrowers could save ranges from two years to nearly 12 years. Of course, those saving 12 years on a flexible mortgage term would have to have a substantial amount of savings untouched. They would also have to overpay regularly to the limits allowed by lenders.

Interest Savings

This leads to the third benefit of taking out a flexible remortgage package. Borrowers who have savings and overpay can save a small fortune in interest on a flexible remortgage scheme*. Again, lenders' estimates of the potential savings on a flexible mortgage vary widely, but even those who save a minimal amount can expect to shave a few thousand off the interest they have to repay. And those with substantial savings in a flexible remortgage or offset mortgage package can save tens of thousands of pounds over the whole mortgage term.

Flexible home loan details imageFinally, a flexible remortgage is a good vehicle for people who earn commission or bonuses, as lump sums can help to reduce the flexible mortgage term. And if they happen to be higher rate taxpayers as well, using an offset mortgage account will save them tax if there savings are in a building society account, then the clients would pay tax on the interest that they have earned. As they do not earn interest on their savings within their mortgage they therefore do not pay any tax on the interest.

All of these reasons will benefit people who take out a flexible remortgage deal. It's worth looking out for lenders' incentives, too. Many flexible remortgage lenders offer to pay legal fees and waive other fees for remortgagers. Flexible mortgage deals come in a variety of flavours and with a number of flexible features. As well as the overpayments and underpayments already mentioned, borrowers may be able to draw down previous overpayments or take additional borrowing at the flexible mortgage rate. To get the best flexible remortgage deal, why not give our professional mortgage brokerage a try. Just detail your circumstances and our advisors will be able to find the right flexible remortgage deal for you.

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