It was invented and has been used in Australia for many years, but is now growing in popularity in this country as more and more lenders adopt it.
The traditional UK mortgage has been with us for many generations. It was designed with the assumption that people had full time employment and could therefore cope with set monthly payments for a 25 year period. However, as many people have discovered, the traditional mortgage does not always cope well with modern employment trends, such as contract working, self employment, job sharing and part time work.
This is where the flexible mortgage comes in. It has the facility for both over and underpayments built into the loan. What this means is you can overpay your mortgage when finances allow (pay rise, bonus, an inheritance etc.), and then, providing you have made overpayments in the past, underpay when finances are tight (job loss, change in circumstance etc).
If you overpay your loan by £50/month for say five years on a flexible mortgage, that cumulative amount is then made available as a cash reserve for you to draw on at any time during the remainder of the mortgage term. This cash reserve can normally be drawn on for such things as, taking payment holidays or making large purchases. Indeed some lenders actually issue the borrower with a cheque book and encourage them to use the account as an all encompassing bank account. However the amount you can withdraw is limited by the original sum of the loan.
If you overpay but never make any withdrawals, you can save a significant amount of interest over the life of the loan. This is because most lenders who offer this type of loan calculate the interest you pay on a daily basis (see what to look for), therefore any overpayment comes immediately off the debt and interest payments are adjusted accordingly.
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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WHAT CAN WE DO FOR YOU?
Our mainstream service is to act on your behalf for the purpose of arranging and advising on the following:
Personal & Family Protection, for example a Life Assurance or Critical Illness Plan;
Mortgages, including Buy‐to-Let - Releasing equity from your home (Equity Release);
For all the services described above we will complete a detailed fact find so we can understand your circumstances, specific needs and objectives.
Following our research we will provide a personal recommendation(s) for you to consider. With your agreement we will then implement our recommendation(s) and arrange any products on your behalf.
Ultimately, whichever type or level of service you require from us we will act in your best interests at all times.
More than just a Mortgage Company
We are a firm of mortgage specialists based in West Yorkshire, with advisers also located throughout the North of England.
We provide advice to both individuals and companies on certain aspects of financial planning, through a long term approach of fully understanding our clients' needs, wants and aspirations and then prioritising objectives. As advisers, we can help you arrange suitable contracts to suit your requirements. We have many years of experience in finding the most suitable solution for our clients' needs.
We provide advice and help following a personal / business financial review which can take place at a convenient time and place. Usually a review will start with a very broad discussion of your concerns and aspirations.
Following your initial review, we will take time to consider your situation, needs and priorities before writing a financial report. We will discuss this in a follow up meeting, or call, in which we'll fully explain our recommendations and agree affordable priorities to assist you in acheiving your objectives.
Why choose us?
We work with many different companies throughout the UK. Some may be your local branch and others are National companies
and we will search to find you the right one.
Whether you are first time buyer, looking to re-mortgage or are even up & down-sizing, we have experienced mortgage advisors on hand to help you make the right decision.
We have helped literally thousands of clients over the years and we pride ourselves in getting to know each and every one of them. So look no further than Square Financial and call us today