Compare Flexible Mortgages

Compare the best flexible mortgages available in the UK and find the right flexible mortgage deal for your needs in minutes. We list the best flexible mortgage deals from the top mortgage providers so that its easy for you to find the cheapest mortgage rate possible.
 CompanyMortgage TypeInitial RateFinal RateAPRMax LTV 
 
 APREnd Date    
 Promoted Results
ING DirectING Direct 2 Year BBR + 1.79% Tracker H/P LTV 60%Standard2.29%24months3.5%3.5%60%ING Direct 2 Year BBR + 1.79% Tracker H/P LTV 60%
Proceed
Yorkshire BSYorkshire BS 2yr BBR + 1.99% Tracker Offset LTV 75% DirectStandard2.49%30 Sep
2012
4.99%4.7%75%Yorkshire BS 2yr BBR + 1.99% Tracker Offset LTV 75% Direct
Proceed
SantanderSantander 2yr BBR + 2.09% Tracker LTV 70%Standard2.59%24months4.24%4.1%70%Santander 2yr BBR + 2.09% Tracker LTV 70%
Proceed
First DirectFirst Direct Term BBR + 2.09% Offset LTV 65% DirectOffset2.59%term2.79%2.6%65%First Direct Term BBR + 2.09% Offset LTV 65% Direct
Proceed
ING DirectING Direct 2yr 0.90% Discount R/M LTV 70%Discounted2.60%30 Nov
2012
3.5%3.5%70%ING Direct 2yr 0.90% Discount R/M LTV 70%
Proceed
 
Available for remortgage only.
ING DirectING Direct 2yr 0.90% Discount H/P LTV 70%Discounted2.60%30 Nov
2012
3.5%3.5%70%ING Direct 2yr 0.90% Discount H/P LTV 70%
Proceed
SantanderSantander 2yr BBR + 2.16% Tracker R/M C/B LTV 70% DirectStandard2.66%24months4.24%4.1%70%Santander 2yr BBR + 2.16% Tracker R/M C/B LTV 70% Direct
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.16% Tracker R/M LTV 70% DirectStandard2.66%24months4.24%4.1%70%Santander 2yr BBR + 2.16% Tracker R/M LTV 70% Direct
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.17% Tracker H/P LTV 70% DirectStandard2.67%24months4.24%4.1%70%Santander 2yr BBR + 2.17% Tracker H/P LTV 70% Direct
Proceed
SantanderSantander 3yr BBR + 2.17% Tracker H/P LTV 70%Standard2.67%36months4.24%3.8%70%Santander 3yr BBR + 2.17% Tracker H/P LTV 70%
Proceed
SantanderSantander 2yr BBR + 2.27% Tracker H/P LTV 70% DirectStandard2.77%24months4.24%4.1%70%Santander 2yr BBR + 2.27% Tracker H/P LTV 70% Direct
Proceed
 
Available via brokers only.
Lloyds TSBLloyds TSB 2yr BBR + 2.29% Tracker H/P LTV 75% Ex/C DirectStandard2.79%30 Sep
2012
3.99%3.9%75%Lloyds TSB 2yr BBR + 2.29% Tracker H/P LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website.
SantanderSantander 2yr BBR + 2.29% Tracker H/P LTV 75% >£550kStandard2.79%24months4.24%4.2%75%Santander 2yr BBR + 2.29% Tracker H/P LTV 75% >£550k
Proceed
SantanderSantander 2yr BBR + 2.29% Tracker R/M C/B LTV 75% >£550kStandard2.79%24months4.24%4.2%75%Santander 2yr BBR + 2.29% Tracker R/M C/B LTV 75% >£550k
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.29% Tracker R/M LTV 75% >£550kStandard2.79%24months4.24%4.2%75%Santander 2yr BBR + 2.29% Tracker R/M LTV 75% >£550k
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.31% Tracker R/M C/B LTV 70% DirectStandard2.81%24months4.24%4.1%70%Santander 2yr BBR + 2.31% Tracker R/M C/B LTV 70% Direct
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.31% Tracker R/M LTV 70% DirectStandard2.81%24months4.24%4.1%70%Santander 2yr BBR + 2.31% Tracker R/M LTV 70% Direct
Proceed
 
Available for remortgage only.
ING DirectING Direct 2 Year BBR + 2.34% Tracker H/P LTV 80%Standard2.84%24months3.5%3.6%80%ING Direct 2 Year BBR + 2.34% Tracker H/P LTV 80%
Proceed
SantanderSantander 3yr BBR + 2.38% Tracker R/M C/B LTV 70%Standard2.88%36months4.24%4%70%Santander 3yr BBR + 2.38% Tracker R/M C/B LTV 70%
Proceed
 
Available for remortgage only.
SantanderSantander 3yr BBR + 2.38% Tracker R/M LTV 70%Standard2.88%36months4.24%4%70%Santander 3yr BBR + 2.38% Tracker R/M LTV 70%
Proceed
 
Available for remortgage only.
Yorkshire BSYorkshire BS Flexi 2yr 2.89% Fxd LTV 75% DirectFixed Rate2.89%30 Sep
2012
4.99%4.8%75%Yorkshire BS Flexi 2yr 2.89% Fxd LTV 75% Direct
Proceed
 A competitive rate for 2 years. Early repayment charges apply during the special deal period. £995 fee. Apply online with a award-winning, paperless process.
SantanderSantander 2yr BBR + 2.39% Tracker H/P LTV 75% DirectStandard2.89%24months4.24%4.2%75%Santander 2yr BBR + 2.39% Tracker H/P LTV 75% Direct
Proceed
SantanderSantander 2yr BBR + 2.40% Tracker R/M C/B LTV 70% DirectStandard2.90%24months4.24%4.1%70%Santander 2yr BBR + 2.40% Tracker R/M C/B LTV 70% Direct
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.40% Tracker R/M LTV 70% DirectStandard2.90%24months4.24%4.1%70%Santander 2yr BBR + 2.40% Tracker R/M LTV 70% Direct
Proceed
 
Available for remortgage only.
Yorkshire BSYorkshire BS Flexi 2yr 2.99% Fxd Offset LTV 75% DirectFixed Rate2.99%30 Sep
2012
4.99%4.8%75%Yorkshire BS Flexi 2yr 2.99% Fxd Offset LTV 75% Direct
Proceed
Yorkshire BSYorkshire BS Flexi 2yr 2.99% Fxd LTV 75% Offset DirectOffset2.99%30 Sep
2012
4.99%4.8%75%Yorkshire BS Flexi 2yr 2.99% Fxd LTV 75% Offset Direct
Proceed
SkiptonSkipton 2yr 2.99% Fixed BBR H/P LTV 60% DirectFixed Rate2.99%30 Sep
2012
4.95%4.8%60%Skipton 2yr 2.99% Fixed BBR H/P LTV 60% Direct
Proceed
Lloyds TSBLloyds TSB 2yr BBR + 2.49% Tracker H/P LTV 75% DirectStandard2.99%30 Sep
2012
3.99%4%75%Lloyds TSB 2yr BBR + 2.49% Tracker H/P LTV 75% Direct
Proceed
SantanderSantander 2yr BBR + 2.49% Tracker H/P LTV 75% Ex/C DirectStandard2.99%24months4.24%4.1%75%Santander 2yr BBR + 2.49% Tracker H/P LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website.
SantanderSantander 2yr BBR + 2.49% Tracker H/P LTV 80% Ex/BStandard2.99%24months4.24%4.1%80%Santander 2yr BBR + 2.49% Tracker H/P LTV 80% Ex/B
Proceed
 
Available for existing borrowers only. N.B. Such mortgages may not be displayed on the lender's website.
SantanderSantander 2yr BBR + 2.55% Tracker R/M C/B LTV 75% DirectStandard3.05%24months4.24%4.1%75%Santander 2yr BBR + 2.55% Tracker R/M C/B LTV 75% Direct
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.55% Tracker R/M LTV 75% DirectStandard3.05%24months4.24%4.1%75%Santander 2yr BBR + 2.55% Tracker R/M LTV 75% Direct
Proceed
 
Available for remortgage only.
WoolwichWoolwich Openplan FM BBR + 2.59% Offset LTV 70%Standard3.09%term2.97%3.3%70%Woolwich Openplan FM BBR + 2.59% Offset LTV 70%
Proceed
WoolwichWoolwich Openplan FM BBR + 2.59% LTV 70%Standard3.09%term2.63%3.2%70%Woolwich Openplan FM BBR + 2.59% LTV 70%
Proceed
SantanderSantander 2yr BBR + 2.59% R/M C/B LTV 75% Ex/C DirectStandard3.09%24months4.24%4.1%75%Santander 2yr BBR + 2.59% R/M C/B LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
SantanderSantander 2yr BBR + 2.59% Tracker R/M LTV 75% Ex/C DirectStandard3.09%24months4.24%4.1%75%Santander 2yr BBR + 2.59% Tracker R/M LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
SantanderSantander 3yr BBR + 2.69% Tracker H/P LTV 75%Standard3.19%36months4.24%4%75%Santander 3yr BBR + 2.69% Tracker H/P LTV 75%
Proceed
SantanderSantander 3yr BBR + 2.81% Tracker R/M C/B LTV 75%Standard3.31%36months4.24%4.1%75%Santander 3yr BBR + 2.81% Tracker R/M C/B LTV 75%
Proceed
 
Available for remortgage only.
SantanderSantander 3yr BBR + 2.81% Tracker R/M LTV 75%Standard3.31%36months4.24%4.1%75%Santander 3yr BBR + 2.81% Tracker R/M LTV 75%
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.89% Tracker H/P LTV 80% DirectStandard3.39%24months4.24%4.3%80%Santander 2yr BBR + 2.89% Tracker H/P LTV 80% Direct
Proceed
SantanderSantander 2yr BBR + 2.89% Tracker R/M C/B LTV 80% DirectStandard3.39%24months4.24%4.3%80%Santander 2yr BBR + 2.89% Tracker R/M C/B LTV 80% Direct
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 2.89% R/M Tracker LTV 80% DirectStandard3.39%24months4.24%4.3%80%Santander 2yr BBR + 2.89% R/M Tracker LTV 80% Direct
Proceed
 
Available for remortgage only.
SantanderSantander Flexible Offset BBR + 2.89% Tracker H/P LTV 75%Standard3.39%term3.49%3.5%75%Santander Flexible Offset BBR + 2.89% Tracker H/P LTV 75%
Proceed
SantanderSantander Flexible Offset BBR + 2.89% Tracker H/P LTV 75%Offset3.39%term3.49%3.5%75%Santander Flexible Offset BBR + 2.89% Tracker H/P LTV 75%
Proceed
Yorkshire BSYorkshire BS 3yr BBR + 2.99% Tracker LTV 85% DirectStandard3.49%30 Sep
2013
4.99%4.7%85%Yorkshire BS 3yr BBR + 2.99% Tracker LTV 85% Direct
Proceed
WoolwichWoolwich Openplan FM BBR+2.99% Offset R/M C/B LTV 70%Offset3.49%term3.74%3.6%70%Woolwich Openplan FM BBR+2.99% Offset R/M C/B LTV 70%
Proceed
 
Available for remortgage only.
SantanderSantander Flexible Offset BBR + 2.99% Tracker R/M LTV 75%Standard3.49%term3.49%3.6%75%Santander Flexible Offset BBR + 2.99% Tracker R/M LTV 75%
Proceed
 
Available for remortgage only.
SantanderSantander Flexible Offset BBR +2.99% Tracker R/M C/B LTV 75%Standard3.49%term3.49%3.6%75%Santander Flexible Offset BBR +2.99% Tracker R/M C/B LTV 75%
Proceed
 
Available for remortgage only.
SantanderSantander Flexible Offset BBR + 2.99% Tracker R/M LTV 75%Offset3.49%term3.49%3.6%75%Santander Flexible Offset BBR + 2.99% Tracker R/M LTV 75%
Proceed
 
Available for remortgage only.
SantanderSantander Flexible Offset BBR +2.99% Tracker R/M C/B LTV 75%Offset3.49%term3.49%3.6%75%Santander Flexible Offset BBR +2.99% Tracker R/M C/B LTV 75%
Proceed
 
Available for remortgage only.
WoolwichWoolwich Openplan FM 2yr 3.59% Fxd BBR LTV 75%Fixed Rate3.59%30 Nov
2012
2.99%3.2%75%Woolwich Openplan FM 2yr 3.59% Fxd BBR LTV 75%
Proceed
The One AccountThe One Account One Account CAM LTV 50%Current Account3.65%term3.65%3.7%50%The One Account One Account CAM LTV 50%
Proceed
The One AccountThe One Account One Account CAM LTV 50%Standard3.65%term3.65%3.7%50%The One Account One Account CAM LTV 50%
Proceed
First DirectFirst Direct Offset Standard Variable Rate LTV 75% DirectStandard3.69%term3.69%3.8%75%First Direct Offset Standard Variable Rate LTV 75% Direct
Proceed
First DirectFirst Direct Offset Standard Variable Rate LTV 75% DirectOffset3.69%term3.69%3.8%75%First Direct Offset Standard Variable Rate LTV 75% Direct
Proceed
NatWestNatWest Term Flexible Offset LTV 75%Offset3.75%term3.75%3.9%75%NatWest Term Flexible Offset LTV 75%
Proceed
The One AccountThe One Account One Account CAM LTV 75%Current Account3.75%term3.75%3.8%75%The One Account One Account CAM LTV 75%
Proceed
RBSRBS Flexible Offset Variable LTV 75%Offset3.75%term3.75%3.9%75%RBS Flexible Offset Variable LTV 75%
Proceed
The One AccountThe One Account One Account CAM LTV 75%Standard3.75%term3.75%3.8%75%The One Account One Account CAM LTV 75%
Proceed
NatWestNatWest Term Flexible Offset LTV 75% DirectStandard3.75%term3.75%3.9%75%NatWest Term Flexible Offset LTV 75% Direct
Proceed
SantanderSantander 2yr BBR + 3.94% Tracker H/P LTV 85% DirectStandard4.44%24months4.24%4.5%85%Santander 2yr BBR + 3.94% Tracker H/P LTV 85% Direct
Proceed
SantanderSantander 2yr BBR + 3.94% Tracker R/M C/B LTV 85% DirectStandard4.44%24months4.24%4.5%85%Santander 2yr BBR + 3.94% Tracker R/M C/B LTV 85% Direct
Proceed
 
Available for remortgage only.
SantanderSantander 2yr BBR + 3.94% Tracker R/M LTV 85% DirectStandard4.44%24months4.24%4.5%85%Santander 2yr BBR + 3.94% Tracker R/M LTV 85% Direct
Proceed
 
Available for remortgage only.
Lloyds TSBLloyds TSB 2yr BBR + 3.99% Tracker R/M LTV 85% Ex/C DirectStandard4.49%30 Sep
2012
3.99%4.4%85%Lloyds TSB 2yr BBR + 3.99% Tracker R/M LTV 85% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
WoolwichWoolwich Openplan FM 5yr 4.79% Fxd BBR LTV 70%Fixed Rate4.79%30 Nov
2015
2.99%3.9%70%Woolwich Openplan FM 5yr 4.79% Fxd BBR LTV 70%
Proceed
Lloyds TSBLloyds TSB Term BBR + 4.79% Tracker R/M LTV 90% Ex/C DirectStandard5.29%term5.29%5.8%90%Lloyds TSB Term BBR + 4.79% Tracker R/M LTV 90% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
WoolwichWoolwich Openplan FM 5yr 5.39% Fxd BBR LTV 80%Fixed Rate5.39%30 Nov
2015
2.99%4.1%80%Woolwich Openplan FM 5yr 5.39% Fxd BBR LTV 80%
Proceed
Lloyds TSBLloyds TSB Term BBR + 4.99% Tracker R/M LTV 90% DirectStandard5.49%term5.49%6%90%Lloyds TSB Term BBR + 4.99% Tracker R/M LTV 90% Direct
Proceed
 
Available for remortgage only.
Lloyds TSBLloyds TSB Term BBR + 5.29% Tracker R/M LTV 90% Ex/C DirectStandard5.79%term5.79%6%90%Lloyds TSB Term BBR + 5.29% Tracker R/M LTV 90% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
Lloyds TSBLloyds TSB Term BBR + 5.29% Tracker H/PLTV90%Ex/CDirectNoFeeStandard5.79%term5.79%6.1%90%Lloyds TSB Term BBR + 5.29% Tracker H/PLTV90%Ex/CDirectNoFee
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website.
Lloyds TSBLloyds TSB Term BBR + 5.29% Tracker R/MLTV90%Ex/CDirectNoFeeStandard5.79%term5.79%6.1%90%Lloyds TSB Term BBR + 5.29% Tracker R/MLTV90%Ex/CDirectNoFee
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
Lloyds TSBLloyds TSB 2yr BBR + 5.39% Tracker R/M LTV 90% DirectStandard5.89%30 Sep
2012
3.99%4.7%90%Lloyds TSB 2yr BBR + 5.39% Tracker R/M LTV 90% Direct
Proceed
 
Available for remortgage only.
Lloyds TSBLloyds TSB Term BBR + 5.49% Tracker R/M LTV 90% Direct No FeeStandard5.99%term5.99%6.3%90%Lloyds TSB Term BBR + 5.49% Tracker R/M LTV 90% Direct No Fee
Proceed
 
Available for remortgage only.
 Full Results
Cheltenham & GloucesterCheltenham & Gloucester 2yr Stepped BBR Tracker FTB LTV 90% DirectStepped Rate0.49%stepped3.99%3.7%90%Cheltenham & Gloucester 2yr Stepped BBR Tracker FTB LTV 90% Direct
Proceed
 
Available for first time buyers only.
Lloyds TSBLloyds TSB 2yr Stepped BBR Track FTB LTV 90% Direct Ex/CStepped Rate0.49%stepped3.99%3.7%90%Lloyds TSB 2yr Stepped BBR Track FTB LTV 90% Direct Ex/C
Proceed
 
Available for first time buyers and for existing customers only. N.B. Such mortgages may not be displayed on... more
Lloyds TSBLloyds TSB 2yr Stepped BBR Track FTB LTV 90% DirectStepped Rate0.69%stepped2.5%2.4%90%Lloyds TSB 2yr Stepped BBR Track FTB LTV 90% Direct
Proceed
 
Available for first time buyers only.
Lloyds TSBLloyds TSB 2yr BBR + 1.49% Tracker H/P LTV 75% Ex/C DirectStandard1.99%30 Nov
2012
3.99%4%75%Lloyds TSB 2yr BBR + 1.49% Tracker H/P LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website.
Lloyds TSBLloyds TSB 2yr BBR + 1.49% Tracker R/M LTV 75% Ex/C DirectStandard1.99%30 Nov
2012
3.99%4%75%Lloyds TSB 2yr BBR + 1.49% Tracker R/M LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
Lloyds TSBLloyds TSB 2yr BBR + 1.49% Tracker H/P LTV 75% Ex/C DirectStandard1.99%30 Nov
2012
3.99%4%75%Lloyds TSB 2yr BBR + 1.49% Tracker H/P LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website.
Lloyds TSBLloyds TSB 2yr BBR + 1.49% Tracker R/M LTV 75% Ex/C DirectStandard1.99%30 Nov
2012
3.99%4%75%Lloyds TSB 2yr BBR + 1.49% Tracker R/M LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
Cheltenham & GloucesterCheltenham & Gloucester 2yr BBR + 1.49% Tracker H/P LTV 75% <£250K DirectStandard1.99%30 Nov
2012
3.99%3.9%75%Cheltenham & Gloucester 2yr BBR + 1.49% Tracker H/P LTV 75% <£250K Direct
Proceed
Cheltenham & GloucesterCheltenham & Gloucester 2yr BBR + 1.49% Tracker R/M LTV 75% <£250K DirectStandard1.99%30 Nov
2012
3.99%3.9%75%Cheltenham & Gloucester 2yr BBR + 1.49% Tracker R/M LTV 75% <£250K Direct
Proceed
 
Available for remortgage only.
HSBCHSBC 2yr 1.75% Disc LTV 70% Special DirectDiscounted2.19%24months3.94%3.8%70%HSBC 2yr 1.75% Disc LTV 70% Special Direct
Proceed
Lloyds TSBLloyds TSB 2yr BBR + 1.69% Tracker H/P LTV 75% DirectStandard2.19%30 Nov
2012
3.99%4.1%75%Lloyds TSB 2yr BBR + 1.69% Tracker H/P LTV 75% Direct
Proceed
Lloyds TSBLloyds TSB 2yr BBR + 1.69% Tracker R/M LTV 75% DirectStandard2.19%30 Nov
2012
3.99%4.1%75%Lloyds TSB 2yr BBR + 1.69% Tracker R/M LTV 75% Direct
Proceed
 
Available for remortgage only.
Lloyds TSBLloyds TSB 2yr BBR + 1.69% Tracker H/P LTV 75% Ex/C DirectStandard2.19%30 Nov
2012
3.99%4.1%75%Lloyds TSB 2yr BBR + 1.69% Tracker H/P LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website.
Lloyds TSBLloyds TSB 2yr BBR + 1.69% Tracker R/M LTV 75% Ex/C DirectStandard2.19%30 Nov
2012
3.99%4.1%75%Lloyds TSB 2yr BBR + 1.69% Tracker R/M LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
Lloyds TSBLloyds TSB 2yr BBR + 1.69% Tracker H/P LTV 75% Ex/C DirectStandard2.19%30 Nov
2012
3.99%4.1%75%Lloyds TSB 2yr BBR + 1.69% Tracker H/P LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website.
Lloyds TSBLloyds TSB 2yr BBR + 1.69% Tracker R/M LTV 75% Ex/C DirectStandard2.19%30 Nov
2012
3.99%4.1%75%Lloyds TSB 2yr BBR + 1.69% Tracker R/M LTV 75% Ex/C Direct
Proceed
 
Available for existing customers only. N.B. Such mortgages may not be displayed on the lender's website. Available... more
Cheltenham & GloucesterCheltenham & Gloucester 2yr BBR + 1.69% Tracker H/P LTV 75% <£250K DirectStandard2.19%30 Nov
2012
3.99%4%75%Cheltenham & Gloucester 2yr BBR + 1.69% Tracker H/P LTV 75% <£250K Direct
Proceed
Cheltenham & GloucesterCheltenham & Gloucester 2yr BBR + 1.69% Tracker R/M LTV 75% <£250K DirectStandard2.19%30 Nov
2012
3.99%4%75%Cheltenham & Gloucester 2yr BBR + 1.69% Tracker R/M LTV 75% <£250K Direct
Proceed
 
Available for remortgage only.
HSBCHSBC Term BBR + 1.69% LTV 60% Special DirectStandard2.19%term2.19%2.2%60%HSBC Term BBR + 1.69% LTV 60% Special Direct
Proceed
ING DirectING Direct 2 Year BBR + 1.79% Tracker H/P LTV 60%Standard2.29%24months3.5%3.5%60%ING Direct 2 Year BBR + 1.79% Tracker H/P LTV 60%
Proceed
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Flexible Mortgage Guide

We explain how to make the most out of a flexible mortgage.

Flexible mortgages allow overpayments and underpayments to be made against your mortgage without penalty costs being incurred.

Being able to control when and how much you repay means that you can overpay when you have spare cash. Conversely, if you find yourself short of money you can repay less than you would normally, skip a payment or even borrow money against the capital repaid.

However, with repayments being under your control rather than being defined by the mortgage lender, you need to maintain discipline when repaying a flexible mortgage. Making too many underpayments, or skipping too many payments without readdressing the shortfall with overpayments will result in you having to extend the period over which you repay your mortgage. This will subsequently increase the amount of interest you have to repay.

In light of this potential problem, it is advisable to follow this simple rule; Overpay when you can. Underpay only when you really need to.

Not all flexible mortgages are equal as the conditions imposed do vary. Some restrict how much you can overpay during a specified period by setting either a lower or upper limit on the additional repayment amount. For example, some lenders will only allow you to make additional payments over £1000. Some lenders will not allow you to make an additional payment of more than £100 per month.

Restrictions can also apply to borrowing against the capital already repaid. In fact, some mortgages labelled as 'flexible' do not allow you to borrow any money against your mortgage. If borrowing is permitted you should check how easy it is to access the cash you require. Do you need to make a formal request or are you able to simply withdraw cash from an account?

There is a type of flexible mortgage that helps you to make even more of your money; the 'current account mortgage'. With this type of mortgage, you current account balance is offset against the outstanding balance on the mortgage. For example, if you have an outstanding mortgage balance of £50,000 and a current account balance of £1,500, your mortgage interest will be based on an outstanding balance of £48,500.

Even if you only ever have your monthly salary paid into your current account, the balance of which gradually falls as the month progresses, you can still save hundreds if not thousands of pounds over the period of the mortgage as the outstanding balance is calculated on a daily basis.

Advantages

  • You can pay off your mortgage early, without penalty, by making overpayments.
  • You can borrow against mortgage overpayments or equity in the property more easily, and at a lower interest rate than a 'standard' loan. (dependent on the type of flexible mortgage)
  • You are able to change mortgage at any time without being penalised as there are no early redemption penalties.
  • You can benefit from a fall in the Bank of England's base rate that leads to a subsequent fall in your lender's standard variable rate.

Disadvantages

  • Making too many underpayments could result in extending the mortgage repayment period.
  • The Bank of England base rate can be unpredictable and can increase rapidly, resulting in an increase in your monthly payments.
  • It is less easy to budget as the interest rate can and will vary.
  • A fall in the base rate will not always result in an equivalent fall in the lender's standard variable rate. (unless the flexible mortgage offers a tracker interest repayment)

NB This information is provided to give you an overview of the different types of mortgages available. It is not comprehensive and you should not base your mortgage decision on the information found here. We recommend you seek professional advice in order to determine the most suitable mortgage for you.