Flexible Mortgages
Borrowers' circumstances can change much more rapidly and dramatically nowadays than was the case a few years ago. For example, few people can now claim to have a job for life and the divorce rate is significantly higher. Consequently there is a growing demand for more flexibility in mortgages and some lenders are now offering mortgage loans which give the borrower many more options than before. These are marketed under various brand names but may be called 'personal choice mortgages', 'freedom mortgages' or simply 'flexible mortgages'.
They may offer some or all of the following options:
- paying more than the agreed monthly payment.
- paying less than the agreed monthly payment.
- payments per annum over ten months.
- temporarily stopping payments.
- lump sum payments.
- cheque books to allow withdrawal of a pre-determined further advance.
- 13 'monthly' payments per annum.
Access to these may be restricted. Others may target self-employed people to whom flexible payment arrangements would be attractive.
Arrangement fees and early repayment charges are common with these products.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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