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Flexible Mortgages basically do what 'it says on the tin' i.e. they are mortgages that are flexible!
However, to nail flexible mortgages down (our sincere apologies for the unintentional usage of DIY puns!) is a more difficult matter, because there is no strict definition for a flexible mortgage, in other words, there's no 'one size fits all' (Oops! There we go again with DIY related puns - time to sack our website copywriter!).
So, here we take a look at Flexible Mortgages in more depth, and investigate what a flexible mortgage is and what it can offer the borrower, along with their possible advantages and disadvantages. We also detail how we can help provide a flexible mortgage or remortgage, even if you have credit problems.
Table of Contents:
So, as we stated earlier, there is no strict definition of a flexible mortgage, and matters become increasingly confused when many standard, fixed and discounted mortgages nowadays have elements of a flexible mortgage built-in, which could well be sufficiently flexible enough for most borrower's circumstances.
Not everything in life is black and white! Nowadays peoples' lifestyles have dramatically changed over the past 25-years or so. There's no longer a culture of "jobs for life", and the UK has over three million adults who are self-employed. Many people take career breaks, or decide to return to their studies, some may move into higher-paid positions, whereas others may decide to get out of the rat-race and take less stressful lower paid jobs.
So unlike the staid dull mortgage products of yesteryear, a real innovative mortgage plan hit the marketplace in the mid 1990's, and consumers haven't looked back since!
The product, known then as the "Australian Mortgage", revolutionised the way in which the UK lenders started to allow additional payments into their mortgage account, and critically changed the way in which mortgage interest was charged to a customer's mortgage account, from a yearly basis to a daily rate basis. And this was the embryonic stage of today's' flexible mortgage product.
Generally, Flexible Mortgage products will feature some or all of the following to enable you to:
You'll see from the list above that the features contained in a flexible mortgage can be very beneficial and can help to facilitate your longer-term goals. For example, the ability to make overpayments will mean that you will be charged less interest and enable you to repay your mortgage more quickly, although if you do need access to funds urgently, the flexible mortgage will usually provide access to your overpayments, or enable you to underpay for a period of time.
The Flexible Mortgage gives the borrower greater control of the account, adapts more easily to changing lifestyles, and can be used in conjunction with either a repayment or interest only mortgage.
There are a few disadvantages to Flexible Mortgages. For instance, the lender's arrangement or plan fees may be higher than with a standard mortgage, and you won't usually get the advantages of a low fixed rate, or long-term discount.
You should also be aware that if you are using the flexible mortgage to borrow more, your borrowings are secured against your home, and in the event of default, your home will be at the risk of repossession. And although your borrowings may be at a low rate over a long period, this can cost you more than borrowing at a higher rate over a shorter term!
'Can Shire Direct help me with a Flexible Mortgage product?' we hear you cry! Absolutely is the answer! We'll carefully assess your circumstances, aspirations, needs and requirements. We'll also help you to determine your priorities. You'll find our advisor's approach to be friendly and helpful, and we'll talk to you in a language you can understand.
We can usually help if you've experienced difficult circumstances in the past, and even some of our sub-prime schemes can incorporate a degree of flexibility. So why not Contact Us to discuss the options that are available to you. Our professionally qualified mortgage experts are available up to 10.00pm everyday on our Freephone line (08000 282 281), and we'll be more than happy to provide you with a fast, in-principle decision, whatever your circumstances! You can also enquire online at any time.
Hopefully, we've managed to shed a bit more light on Flexible Mortgages for you and their beneficial aspects and downsides - don't hesitate to get in touch if you feel we could be of further assistance, we would love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
