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Why choose Endsleigh for Flexible Mortgages

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Why are they so popular?

The Flexible Mortgage gives you some choices, not least of which is the ability to overpay or underpay the monthly premium as circumstances dictate.

The benefits of overpayment

By overpaying (i.e. repaying more of the loan than your agreed monthly premium), you have the chance to pay off your mortgage quicker and therefore save on the interest charges.

You can overpay regularly, or in the form of 'one-off' lump sums. Either way, since interest on a flexible mortgage is calculated daily, the money is deducted from your debt immediately.

That means you start paying interest on a smaller amount straight away, which could amount to savings of five figure sums in future interest payments.

A handy option when money is tight

Conversely, once you have made overpayments a flexible mortgage allows you some extra breathing space should your finances become stretched. You can then choose to underpay for a few months until you're back on your feet.

You could even give yourself a payment 'holiday' - a total break from paying your premium - for up to a year in some cases. (This will depend on the amount of equity you have.)

Some flexible mortgages let you withdraw overpaid money directly using a cheque book or debit card.

Others let you borrow more money as the value of your property increases.

The different mortgages available are well worth looking into and comparing.

Further flexibility...The Current Account Mortgage.

With the success of flexible mortgages, further new mortgage options based on the premise of improved customer ease and convenience have soon followed.

One of these is the Current Account Mortgage (often known as a CAM) which allows you to manage a selection of your personal finances through one account.

How does a CAM work?

Your mortgage, current account, investments, credit cards and any personal loans are combined in a single account with interest applied at the mortgage rate.

This can be an attractive option, since the mortgage rate is usually higher than savings rates. Any money which would usually be held in your savings or current account is used to offset against your mortgage.

The main advantage is that you pay less interest and your money works harder.

The drawbacks are that all your money is directed into your CAM (which reduces your investment choice) and that some CAMs have restrictive entry.

Offset Mortgages

An Offset Mortgage is similar to a CAM, except that your mortgage, your savings and your current account are kept as distinct entities.

Saving and borrowing rates are offset against each other, but you have a clear view of the different pools of money.

It's a good way to 'streamline' your finances and enjoy higher interest rates on your savings, but the same drawbacks that apply to CAMs also apply to the Offset mortgage.

Endsleigh were extremely helpful and efficient throughout my mortgage application, helping us to compare the various mortgage products in the market. I am very pleased with the product they secured for us.
AN, Abingdon

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Endsleigh Financial Independent Tailoring is a trading name of Endsleigh Independent Financial Services Limited which is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Independent Financial Services Limited. Company No: 4132605 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.