Arranging a mortgage is probably one of the largest financial decisions that you will ever have to make. And if you currently have a mortgage, it could be a big mistake to assume that it is the best one for your situation.

A flexible future
As work patterns continue to change and more people are becoming their own boss, the mortgage industry has started to realise that borrowers require more flexible mortgages with schemes that can adapt to their own individual needs.

Flexible solutions
Generically known as the 'flexible mortgage', not every scheme offers you the same options. However, some flexible mortgages allow you to repay the debt ahead of time. That means you can take advantage of pay increases, bonuses and any other type of windfall to reduce your debt immediately. And you can subsequently draw money down for short-term credit needs.

Also, some flexible mortgages give you the freedom to reduce or suspend your payments - within certain limits - to reflect changes in your circumstances. This gives you the facility to become entirely debt-free years ahead of schedule. Flexible mortgages - available now as fixed or discounted loans - are not just applicable to new borrowers. They could also prove most advantageous to you if you already have a mortgage and do not wish to move house, but would like to cut costs and improve your mortgage terms.

Many modern flexible mortgages calculate their standard variable interest rates daily instead of annually as is the case with traditional lenders, making them even more attractive.

Preferential credit
Flexible mortgages allow homebuyers to draw down loans within the maximum advance agreed at any time. Another way to achieve the same effect, particularly where money is tight for short periods, such as Christmas or the summer holidays, is to take a break from your mortgage payments. Unlike traditional mortgages, where you have a contractual obligation to maintain monthly payments throughout the term of the loan, flexible mortgages can make it easy to adjust or suspend payments. With the most modern flexible mortgages, after you have paid the first six months' installments, you are usually free to take a two-month payment holiday in any year, subject to your available equity.

Looking for a change?
Re-mortgaging to a modern flexible mortgage can unlock much-needed capital tied up in your home. Because it can run for up to 25 years, you can use it to fund a range of short-, medium- and long-term credit needs, to pay for anything from holidays to school fees. Your mortgage need no longer be an inflexible, single-purpose contract. Instead, it could form the basis for funding a wide range of personal financial objectives with the flexibility to adapt to your changing requirements at different stages of life. If you would like to find out whether a flexible mortgage could suit your own situation, don't delay and pay unnecessary interest.