Repayment Mortgages

Repayment Mortgages are the standard option, but sometimes it's necessary or just worth to consider flexible payment options like:

• increased regular payments
• irregular lump-sum payments
• deferred start
• payment breaks

If you are thinking of using any of these options you need to contact your lender first to arrange it. This way you will avoid affecting your credit rating in case you miss any repayments on monthly basis.

Increased regular payments and irregular lump-sum payments

With variable rate mortgage, lender will let you increase monthly payments and use ocassional lump-sums to reduce your mortgage. Main advantages of this solution are reduced mortgage term and savings on mortgage interest.

Deferred start

Lender may allow you to delay the start of repayments on your mortgage for a number of months. They will charge interest on the mortgage for that period of time and they will increase your mortgage by the value of this interest. Sometimes deffered start is the only option for first time buyers letting them use some extra cash at the start to furnish a new home.

Payment breaks

If you need extra cash (when a baby arrives for instance) some lenders will offer payment breaks. It means you can spread monthly repayments over a shorter period of time or postpone payments for some time if you arrange to pay your mortgage over - for example - 10 months, your monthly repayments will be increased to cover the value of two months you skipped.

In any case, if you postopne payments your repayments will increase slightly afterwards in order to keep your mortgage term unchanged.