A flexible mortgage is designed to give you more control over your finances with varying degrees of flexibility - you should be able to overpay, borrow back overpayments, underpay and take payment holidays when you make a payment, plus as soon as you make a mortgage payment you start paying interest on a smaller loan amount.
What are the benefits of a flexible mortgage?
Flexible mortgages are specially designed to accommodate the changes taking place in our working environment and lifestyles. Some flexible mortgages allow you to take payment 'holidays' where you can choose not to make monthly payments for up to six months. This is particularly useful for couples starting a family, or people taking time out to study.
However you will have to agree payment holidays with your lender as taking time off could either increase your repayments later on or prolong your loan period.
Interesting information regarding Flexible Mortgages provided by Guardian Limited
List of some lenders who can provide you with a flexible mortgage (subject to status):
Alliance & Leicester Building Society
NatWest Bank
Skipton Building Society
Halifax Bank
Northern Rock Building Society
Scarborough Building Society