Flexible and offset mortgages

Flexible and offset mortgages allow you to make overpayments to shorten the length of the mortgage repayment term. Flexible mortgages also allow you to make underpayments and take payment holidays with no extra charges. A flexible and offset mortgage can be very useful for the self employed or borrowers who have fluctuating income.

Some flexible and offset mortgages allow you to borrow back the overpayments you have made. It is quite common for interest to be charged daily on these types of mortgages. A flexible mortgage may not always offer the best rates, so in effect it is likely that you will be paying a premium for the benefit of the flexibility.

Offset mortgages can be quite complicated but if you use them effectively they can be of real benefit. Basically, offset mortgages put your money into a virtual pot, pulling all of your money together. So, if you owe £80,000 on your mortgage, paying interest at five per cent but also have savings of £20,000 earning two per cent interest, the offset calculates that you owe £60,000 and charges interest on that. Because typically mortgage interest costs more than you earn on your savings it is a good method of saving money on your overall finances.

	Coventry BS unveils 65% LTV offset mortgages from 3.49% Coventry Building Society has introduced a range of offset and buy to let mortgages with flat fees at 65 per cent loan to value.
	LV= cuts rate on its lifetime and flexible lifetime mortgages LV= has announced that it will cut the rates on their lifetime and flexible lifetime mortgages for the second time this year as a result in a fall in the wholesale rates.
	Leeds Building Society announces new deals on offset mortgages Customers eager to take on an offset mortgage may wish to head to Leeds Building Society after it announced new deals on such products.
	Offset mortgages: How to link your savings to your mortgage By linking your savings to your mortgage repayments you could save hundreds of pounds a year in lower mortgage interest payments and the process is easier than you might think.
	More people 'discovering benefits of offset mortgages' More inviduals may now be aware of the potential benefits of an offset mortgage.