Flexible mortgage options
2 MIN READ
Every year we put the clocks forward an hour in Spring and back an hour in Autumn. But while we adapt to something as fundamental as changing time, we don’t always adapt our mortgages when our lives change.
More and more mortgages now allow you a bit of flexibility to better to suit your lifestyle. Here are just a few ways you can change how and when you repay your mortgage.
1 Change your mortgage payment date
The most obvious thing you can do is change the date when you pay your mortgage. If you always get paid around the 21st of each month, for example, then it may make your life simpler if your mortgage repayment comes out of your account on the 22nd or 23rd.
Sometimes, people change jobs and get paid on a different date but forget to change when their mortgage gets paid.
Contacting your lender to adjust the date of your mortgage repayment can help reduce your chances of your account going overdrawn and paying fees and charges.
2 Skip a payment or two
Christmas, summer holiday months and ‘back to school’ can all be expensive times of year. It might suit you better to skip mortgage payments at these times to allow for your additional expenses.
Lenders will sometimes allow you to skip a payment or two in a year as long as you pay the amount you would normally pay in 12 months over 10 or 11 months instead. That means higher repayments over fewer months but a break when you need it.
3 Skip the first 3 months’ mortgage repayments
Moving house is an expensive time, especially if you are a first-time buyer, so skipping repayments for the first 3 months of your mortgage may help you cope at a time when you have a lot of bills to pay.
Some mortgage lenders allow you to do this and repay the equivalent of those first 3 months over the remaining term.
4 Take a break from repayments
When a baby comes along or you have a large expense to cover, it might be helpful to take a break from mortgage repayments for a few months.
Some lenders now allow you to do this several times during the term of a mortgage. Terms and conditions may apply.
5 Overpay and save interest
Alternatively you may find yourself in the position of being able to overpay your mortgage each month or with a one-off lump sum. Overpaying will reduce your remaining balance saving you interest over the term of the mortgage.
With a lower balance to repay you can pay your mortgage off sooner or reduce your monthly mortgage repayment amount. Terms and conditions may apply and, if you repay a fixed loan early, you may have to pay charges.
6 Split your mortgage between a fixed and variable rate
You don’t have to choose between fixed or variable rate mortgages. With a twin rate mortgage you can get the certainty and stability of a fixed rate plus the flexibility of variable rates.
You decide how much of your mortgage to put on a variable rate and how much on a fixed rate.
Find out more
To find out more about Bank of Ireland mortgages, click here.
Bank of Ireland Mortgage Bank trading as Bank of Ireland Mortgages is regulated by the Central Bank of Ireland