Interest Rates On Flexible Mortgages

Should I Worry About Interest Rates On Flexible Mortgages?

Unfortunately, interest rates on flexible mortgages have been hit just as hard as any other mortgage. Because of the severity of the credit crunch, not one mortgage lender or mortgage product has been able to stay the same. This means interest rates on flexible mortgages have moved up by maybe 2 or 3 percent in the last 6 months. But there are no mortgage deals that have fared any better, so when shopping for a new mortgage there are still many reasons why you should opt for a flexible mortgage.

Ignoring interest rates on flexible mortgages, the deals have many advantages over other mortgages because of what you can do with them. Many deals are fixed and strict - pay the rate each month or face punishment and repossession. With flexible mortgages you have freedom to take payment breaks or you can choose to pay off your mortgage faster with no penalties. You can even raid your equity if need be - so even with interest rates on flexible mortgages rising, they are still a good deal.

The most important thing about interest rates on flexible mortgages is that interest rates on flexible mortgages are not that important. Of course they have an affect on your decision, and they certainly have an affect on your month-by-month finances. But because a flexible mortgage is flexible it has so much more to it that will affect your life - even the rate can be flexible when you opt for an offset flexible mortgage. A mortgage is a whole product, and each facet of the deal will affect how your mortgage works - so having one with flexible facets is much more important than just a low rate.

Although they may not be the most important single part of a mortgage, interest rates on flexible mortgages do matter. Talk to an adviser to find out where you can find the cheapest interest rates on flexible mortgages as a whole part of the best mortgage for you. But don't sacrifice flexibility for low rates - your life always changes and flexibility is key to managing your mortgages round that. So should you worry about rates? No, worry about finding the best overall deal possible.

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© 2007 and 2008 Offset Mortgage Centre | Terms and Conditions | Privacy Statement | We don't charge a fee for admistration of an offset mortgage. The Offset Mortgage Centre is the trading name of The Mortgage Broker Ltd, (a whole of market mortgage broker), which is an appointed representative of Home of Choice Limited, which is authorised and regulated by the Financial Services Authority | Your home may be repossessed if you do not keep up repayments on your mortgage. *Source Barclays Bank: Calculation based on an offset tracker product; repayment mortgage of £100,000 over a 25-year term that has been offset with £20,000 savings, resulting in a reduction in mortgage term of 8 years and 8 months or a saving of £44,867 in overall interest. Calculation assumes balance remains constant throughout the life of the mortgage and that the mortgage loan and savings balance will vary. Outcomes will be either a reduction in payments or a reduction in mortgage term. No interest is paid on balances offset against the mortgage. Typical rate is 6.45% (variable). The overall cost for comparison is 6.7% APR.