Shared Ownership Mortgages & Remortgages: A Complete Guide

Versatile Mortgages – A Information

We obtain a whole lot of enquiries from individuals who wish to perceive what a versatile mortgage is and the way the particular options accessible with the sort of product might help them with their subsequent property buy.

So as so that you can have a clearer concept of how versatile mortgages work within the UK we’ve got produced this complete information which covers the next areas:

When you’ve learn by way of the small print under, when you’d like to grasp extra about versatile mortgages make an enquiry and we will organize for an knowledgeable to contact you instantly.

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What is a versatile mortgage?

A versatile mortgage is a residential mortgage loan which comes with a better diploma of flexibility than you would possibly discover with different mortgage merchandise. The flexibleness you get with the sort of loan might differ, however normally you’d be capable to change your month-to-month fee quantity, repay early, take again money you might have put in or postpone funds.

A number of the extra frequent options provided by versatile mortgage lenders are:

  • Overpayments
  • Underpayments
  • Curiosity calculated day by day
  • Fee holidays
  • Versatile mortgage financial savings account
  • Switching


With a versatile mortgage you might have the choice of paying over and above the preliminary month-to-month fee, set by the lender on the outset, at any stage in the course of the time period. This will both be by way of a lump sum or as a rise to your common compensation.

As that is elective you possibly can cut back your compensation again all the way down to the unique quantity at any time. By overpaying you possibly can cut back the general quantity of curiosity you’ll pay all through the time period and repay the stability sooner than deliberate.

Some lenders might prohibit the quantity you’re capable of overpay on sure kinds of versatile mortgages (normally as much as 10% of the stability). If you happen to go over this quantity a cost might apply.


Mainly the alternative of overpaying. If wanted, you’re allowed to underpay by a specific amount for a set interval. Often, this selection is just accessible after getting overpaid and already forward of the unique funds plan.

The phrases accessible for underpayments will differ from lender to lender.

In case your mortgage supplier permits underpayments, make sure you make them conscious you’re underpaying earlier than you accomplish that.

Every day curiosity calculations

Calculating curiosity day by day is often the most affordable means for a supplier to work out your mortgage curiosity, as any funds you make are taken under consideration instantly relatively than on a month-to-month or yearly foundation.

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That is notably related for versatile mortgages. If, for instance, you make an advert hoc lump sum overpayment, this may have an effect on the general curiosity due immediately.

Fee holidays

Generally our monetary affairs can change into compounded resulting from unexpected occasions. In such circumstances a break from what’s normally the most important common monetary dedication can provide us time to get again on our toes.

With some versatile mortgages you possibly can take a fee break any time, usually as much as a most of six months. Some lenders might solely provide this when you’ve got beforehand overpaid or made a sure variety of funds.

It’s price noting that while you are taking a break the curiosity funds will nonetheless accrue, due to this fact, you could find yourself paying again extra curiosity throughout the entire time period.

Versatile mortgage financial savings account

If you happen to overpay at anytime in the course of the time period of your mortgage, some lenders provide a versatile function permitting you to ‘borrow again’ that quantity in a while when you want it. This function, coupled with overpayment, lets you each lower your expenses on curiosity funds and use your versatile mortgage as a sort of financial savings account for any future occasions.


This function lets you swap between various kinds of versatile mortgage while incurring no early compensation prices or having to undergo a remortgage software. For instance, when you’ve got a versatile tracker mortgage however wish to swap to a versatile mounted fee mortgage you are able to do so.

These options will all differ from lender to lender. If you happen to’d prefer to know extra about which versatile mortgage lenders provide particular options, make an enquiry with us and we will organize for an knowledgeable to contact you instantly to debate additional.

Are there various kinds of versatile mortgage accessible?

Sure, there’s quite a lot of various kinds of versatile mortgages, as outlined under:

Versatile compensation mortgages

A versatile compensation mortgage makes use of essentially the most conventional technique of borrowing cash to purchase a property, whereby each your capital and curiosity cut back regularly in the course of the time period.

A versatile fee mortgage can enable you better freedom to overpay or underpay and take fee holidays must you want them as outlined above.

Versatile offset mortgage

Versatile offset mortgages use your money financial savings to ‘offset’ the quantity of curiosity you pay in your versatile mortgage repayments. For instance, with an offset mortgage when you’ve got £20,000 in money financial savings linked to an quantity borrowed of £100,000 you’ll solely pay curiosity on £80,000.  

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You can too see our Offset Mortgages part to search out out extra.

Versatile mounted fee mortgage

Most lenders can provide a versatile mortgage with a variety of mounted charges in the identical means they’d with a conventional mortgage. The added choices accessible with a versatile mortgage could make the sort of mortgage very engaging.

If you happen to’d prefer to know what the most effective versatile mortgage charges are throughout the market make an enquiry and we will organize for an advisor we work with to get in contact.

Versatile tracker mortgage

Versatile tracker mortgages work precisely the identical as commonplace tracker mortgages and can observe the motion of the Financial institution of England’s base fee however with the addition of quite a lot of versatile fee options.

The advantage of a switching function lets you transfer between various kinds of mortgage. For instance, if a tracker mortgage begins to look much less engaging subsequent to a selected mounted fee provide, you possibly can transfer throughout if you wish to with out cost.

If you happen to’d prefer to know extra concerning the various kinds of versatile mortgages accessible make an enquiry and we will organize for an advisor we work with to get in contact.

What is a versatile mortgage calculator and the way does it work?

A versatile mortgage calculator is a device that can be utilized by both a versatile mortgage lender or mortgage advisor with a view to work out how a lot you could possibly borrow and to provide a sign as to what the repayments will probably be for the sort of lending.

While all lenders will use their very own calculator based mostly on their particular in-house necessities, the excellent news is that such devices usually are not unique to mortgage suppliers.

Yow will discover versatile mortgage calculators on many UK lenders’ or different on-line mortgage web sites.

What is a versatile offset mortgage calculator?

A versatile offset mortgage calculator is a device similar to a versatile mortgage calculator, nonetheless it’ll have in mind the financial savings factor which offsets the curiosity payable for this quantity – a key distinction between the 2 lending strategies.

The place can I discover the most effective versatile mortgage offers?

Every versatile mortgage lender will provide their very own variations of the sort of lending with most, if not all, of the everyday versatile options included however with completely different parameters in step with their very own in-house rules.

Looking for the most effective versatile mortgages which fits your personal private necessities may be fairly a laborious process by yourself.

If you happen to make an enquiry with us we will organize for a mortgage dealer we work with to get in contact. As they undertake a ‘entire of market’ strategy, they may be capable to perform a versatile mortgage comparability and establish the most effective versatile mortgage lenders who provide the options and most beneficial phrases which fit your wants and circumstances.

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Regularly Requested Questions

What kind of borrower is a versatile mortgage most certainly to attraction to?

Versatile mortgages have gotten increasingly more well-liked amongst most of the people as a number of individuals are drawn to the numerous versatile fee options that may be included and the peace of thoughts this brings.

These kind of mortgages would probably attraction to people who find themselves…

Whether or not your fluctuating revenue is on a seasonal foundation or as a result of distinctive nature of your small business, the flexibility to overpay and underpay in your mortgage is one thing that may show to be extraordinarily interesting.

If you happen to’re self-employed and wish to focus on what versatile mortgage offers might fit your circumstances, make an enquiry and we’ll organize for a specialist to contact you instantly.

What is a versatile drawdown mortgage?

A versatile drawdown mortgage is a sort of versatile retirement mortgage and one other time period used to explain an fairness launch scheme and is accessible to anybody over the age of 55. The kind of flexibility accessible for this type of lending relates extra to the discharge of money sums from the fairness inside your property.

If you happen to’d prefer to know extra about versatile drawdown mortgages get in contact and we’ll organize for an knowledgeable to talk with you.

Can I get a versatile overpayment mortgage?

Sure, this might be attainable – many versatile mortgage lenders enable debtors to make overpayments underneath the proper circumstances. See the opening part of the article for extra details about versatile overpayment mortgages.

Can I get a versatile mortgage loan anyplace within the UK?

Versatile mortgage lenders function up and down the UK, and you will see that some have postcode restrictions, particularly in elements of Scotland and Northern Eire.

So, for instance, if you’re in search of versatile mortgages in Belfast, the variety of approachable lenders will probably be fewer than for a buyer who’s after one in London.

Subsequently, it’s particularly essential to use by way of a whole-of-market dealer to be sure to find yourself with essentially the most beneficial rates of interest on provide.

Communicate to a mortgage knowledgeable about versatile mortgages.

Attempting to match versatile mortgages and determine which options are best for you and your personal circumstances is one which requires very cautious thought. Plenty of folks search skilled recommendation to help them with their resolution.

You probably have questions and wish to communicate to an knowledgeable for the proper recommendation, name On-line Mortgage Advisor as we speak on 0808 189 2301 or make an enquiry.

Then sit again and allow us to do all of the arduous work find the mortgage advisor with the proper experience in your circumstances.  – We don’t cost a payment and there’s completely no obligation or marks in your credit standing.