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Mortgage glossary

Flexible mortgages

A flexible mortgage is a loan secured against a property with more freedom in payment schedules than a standard mortgage.

It typically allows people to take payment holidays when money is tight and also to overpay in good times, without incurring charges, making it ideal for people with variable incomes.

In exchange for this flexibility the interest charged on a flexible mortgage is slightly higher than on a standard loan.

A flexible mortgage can also allow a borrower to make smaller payments and to take out more money on their mortgage or drawback previous overpayments.


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