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Flexible mortgages
With a flexible mortgage you do not have to pay a fixed amount each month.
You can accelerate or slow down your repayments to suit your life style,
whether you want to deposit your annual bonus into your mortgage account to reduce
your mortgage debt or take a payment holiday if you have to go on maternity leave.
The growing appeal
of flexible mortgages
Flexible mortgages first arrived in the UK in the mid
1990's, having originated in Australia. They now account
for approximately one third of all new mortgage business.
Part of the appeal of flexible mortgages
comes from changing employment patterns that now favour
short-term contracts and performance-related pay. People
are now much more inclined to take career breaks and
almost half of all UK workers now take home a variable
amount of income each month. Many millions of workers
are also now getting some form of an annual bonus.
Flexibility in other mortgage types
True flexibible mortgages are always associated with variable rates, yet some features
of flexible mortgages are becoming common in most other types of mortgage, especially
in tracker mortgages and discounted mortgages.
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