Demand for flexible home loans grows in the UK
With the surprising increase in interest rates recently announced by the Bank of England, and an overall rise in UK cost of living expenses, UK homeowners finding it difficult to make ends meet are turning to their home loan lenders demanding that they be given flexible UK home mortgage loan terms.
In a recent UCB Home Loans questionnaire 69% of those question responded that, given the choice, they would be apply for UK flexible home mortgage loan terms. Under flexible home mortgage loan terms, the borrower is allowed to overpay, under pay or pay the required repayment amount, depending upon their current financial circumstances. So, if this month has been a hard one with lots of unforeseen bills, you can repay less than you would normally be required to.
Conversely, if you have just had a bumper month with a nice fat bonus attached to it, you can make an overpayment on your UK home mortgage loan. If things are as you thought they would be, then you just repay the required monthly amount that month. Done with the rules, and all of these day be done without incurring any additional costs and fees.
As you can see then, flexible home loans work in much the same way as ‘flexi’ time in most UK offices. Here again there is a similarity. Although you can make an overpayment on your UK home mortgage loan, you cannot repay the loan in full, otherwise you’ll incur fees and charges for early repayment of the loan.
Likewise, you cannot underpay by more than the permitted amount, nor can you underpay more than a selected number of times. Otherwise you’ll find that your UK home mortgage loan lender will become concerned that you are having ongoing financial difficulties and are unable to repay the home mortgage loan. You may then find that they start to commence foreclosure proceedings against you.
With the Bank of England likely to increase interest rates again in the next 6 months, and facing a winter of expensive fuel costs, the attractiveness of flexible home mortgage loans is not difficult to see. Nonetheless, flexible home mortgage loans are not the only option available in the market at the moment and with UK home mortgage lenders falling over themselves to attract new home mortgage customers at this time, you should still be shopping around looking for the best deal to meet your long-term needs – because you can be sure that there are some good deals out there.
Richard Smith
6th October 2006
More Information:
- Different Types Of Mortgage
Rather like a full house in poker there seems to be a wide selection of mortgages on the market, but aren’t many of them the same kind of product?
- Paying Off Your Mortgage Early
Twenty five years is the average period of a mortgage… Twenty five years is a long time! The dream of many people is to pay off their mortgage early. Can it be done?
- The True Cost Of Your Mortgage
It’s easy to say “go and research the market place to find the cheapest mortgage”, but is it that easy to actually do it and how do you know that you have really got the best mortgage deal when you’ve finished?
