Flexible Repayment Mortgage

These are repayment mortgages that may be altered when circumstances change. Interest is generally recalculated monthly. In today's competitive market it has become common practice for some lenders to calculate interest on a daily basis. This can be a major benefit for the borrower.

Common flexible arrangements which may be available with this type of mortgage are repayment holidays. Borrowers can also be allowed overpayments and underpayments on their mortgage loan as their circumstances change. Lump sum repayments may also be allowed and are often without attached penalties.

This type of mortgage is more flexible than traditional mortgages and is becoming increasingly more popular.