Flexible & Offset

Some mortgages allow you to vary payments for periods of time. You could also make overpayments to help pay your mortgage off early. You may have the facility to take payment holidays or borrow money back to help you get through an expensive period.

Some schemes allow you to 'offset' savings against the mortgage to reduce the amount of interest payable, others incorporate current accounts, savings accounts and credit cards.

Some of these schemes can be very complicated and it can be hard to keep track of the overall payment schedule. You should think carefully whether a mortgage of this nature is suitable for you before taking one out. It is often possible to get a cheaper pay rate by taking an alternative type of scheme.

Cashback

As an incentive to take out a mortgage, some lenders offer cash back on completion. These can be particularly appealing to first-time buyers who may want to buy carpets, furnishings etc. Often the lender will charge you their Standard Variable Rate and expect you to stay on this for a period of time.

Occasionally lenders offer smaller cash back schemes in combination with other rates i.e. discounts or fixed schemes.

Early repayment Charges