Investigating Current Rates And Fees On Flexible Mortgages


Conventional mortgage loans won’t allow you to skip payments. In fact, if you do happen to skip a payment- you might see your home get repossessed! Flexible mortgages are a pioneer in the thinking that home owners should be given more freedom in payment schedules.

The minimum payment on a flexible mortgage is often just the interest owed for that time period. Since interest payments don’t total to a substantial amount of money, even large financial disasters will not mean you lose your home in the wake of instability. This is ideal for the self employed business owners of the world, as well as contract workers who have temporary work.

Remember that only paying the minimum interest payment is not a good plan for you financially. It will only put away fears of a foreclosure- it won’t allow you to make progress on paying off your mortgage. Months in which are paid as minimum will essentially add another month onto the mortgage term- if not more! Therefore, one should use the flexible mortgage responsibly if you wish to pay off your mortgage according to the original plan.

The interest rate of a flexible mortgage is subject to change. Depending on the lender and the country, you might have it changed at every five years as an example. Be smart in following market conditions to get the most out of your money. If you believe the next change in interest rate to cause a price hike, try to pay off as much of the loan as you can before the new interest rate takes effect.

If you have exceptional credit you might be able to apply for payment holidays as well. These “holidays” are simply payment periods in which you are able to skip. There are some limitations in how you can do such a thing, and how often, but it’s a great “Plan B” when money becomes scarce. Payment holidays also extend the life of the loan and the total interest paid, so use them sparingly if at all.

A good credit rating is required for flexible mortgages. That’s because flexible mortgage loans are so easily abused by those who have a poor history of responsible financial decisions. If you would wish it, you could get by only making minimal interest payments indefinitely. It might allow you to get by and have fun, but it would ultimately put you in more debt than you could imagine.

Final Thoughts

There are an incredible amount of mortgages to choose from. Don’t stop your search with flexible mortgages. Talk to a mortgage lender to see what other mortgages you could apply for instead. If flexible mortgages strike you as appealing, just remember to observe responsibility during the course of the loan.

Learn more on Flexible Home Loan and Compare Flexible Mortgages.