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Error: Yearly income income must be between £1 and £10,000,000.
Error: Regular bonus must be between £1 and £10,000,000.
Based on your yearly income,
you may be able to borrow
Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.
Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.
Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.
What is a Flexible Mortgage - And Who is It Best Suited To?
The Revolution Brokers team receives multiple enquiries from people interested in a flexible mortgage, and the freedom it allows to change and fluctuate your repayments over time.
This guide will explain what a flexible mortgage is and what factors to consider if you are thinking about this type of home loan.
How is a Flexible Mortgage Different?
A flexible mortgage is a loan secured against your home, but with the option to change how much you pay back each month.
Typical features include:
- Ability to make over or underpayments.
- Daily interest calculations.
- Optional payment holidays.
- A flexible mortgage savings account.
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How do Over and Underpayments Work on a Flexible Mortgage?
The lender will set a monthly payment value, and you can choose to pay more or less as you wish.
Overpayments mean that you pay back the mortgage faster, and reduce your total interest cost. You can overpay by up to 10% of the outstanding balance on your mortgage in most cases.
You can also pay less, although different lenders will have different rules about how much you can underpay by, and for how long.
Why is Interest Calculated Daily on a Flexible Mortgage?
Given that you can make changes to your payments, within the terms of the contract, a flexible mortgage calculates interest each day rather than each month or year.
The positive is that if you make an additional repayment, your interest costs will immediately drop, rather than waiting until the next month or year to be recalculated.
What Payment Holidays are Available on a Flexible Mortgage?
Payment holidays can be invaluable if you have experienced a drop in income or want to hold onto your planned mortgage repayment value to cover other costs.
In some cases, rules limit a payment holiday up to six months or only allow a payment holiday if you have overpaid by a specific value.
You need to understand that interest continues to accrue while you take a repayment holiday to increase the total interest cost.
What is a Flexible Mortgage Savings Account?
Some flexible mortgage products offer you a savings option, where you can deposit your overpayments but set the funds aside to drawback out again should you wish.
What is Switching in a Flexible Mortgage?
Switching means that you can go back and forth between different flexible mortgage products, without an early repayment penalty or needing to start from scratch with a remortgage.
That could mean switching from a tracker rate to a fixed rate, for example.
Flexible borrowing is growing in popularity since flexibility is ideal for:
- Self-employed applicants with a variable income.
- People with employment that includes bonuses or commissions.
- Agency workers with changing income levels.
- Zero hours contract workers.
This alternative option is designed for retirees as a type of equity release product. Applicants must usually be at least 55 years old and can choose to release cash payments in lump sums from the equity owned in their home.
The criteria will depend on the lender - if you'd like a mortgage with the option to make overpayments, give us a call on 0330 304 3040.
There are limitations on mortgages for specific areas in Scotland and Northern Ireland, and the number of lenders in each region will vary. Therefore, the best option is to seek advice from an accredited broker who can recommend the best lenders who cover your region.
If the idea of a flexible mortgage sounds appealing, give the Revolution team a call on 0330 304 3040, or email us at [email protected]. As an independent, whole-of-market broker, we negotiate thousands of deals every month and are here to make sure you get the most competitive rates possible.
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Brokers couldn't be easier:
As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.
The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.
We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.