| This is a type of mortgage,
which allows more flexibility over the payments
to the lender and also to place additional sums in the mortgage
account and also to withdraw them.
It is very important with this type of mortgage that adequate control
is maintained over the loan and that the loan is used as a method
of reducing borrowings quicker than a conventional mortgage. Due
to the flexibility of the product it would be possible to borrow
monies and increase the level of debt, when the intention was to
reduce the overall level of borrowings. Caution and good financial
management is therefore needed with this type of product.
The benefits available do vary from one lender to another but in
general terms they do provide a far greater degree of flexibility
than some of the other schemes available.
It is also possible to arrange a flexible mortgage
with the initial benefit of a discounted rate for a limited period
of time.
|
