Your home may be repossessed if you do not keep up repayments on your mortgage.
Flexible mortgages recalculate the outstanding capital and interest (the amount you owe) on a daily basis. This allows you to make overpayments when you have money to spare, and see an immediate reduction in your loan.
Some also allow you to make underpayments when finances are tight, which will increase the interest you have to pay in the long term.
They may even allow you to take repayment holidays – a complete break from making payments as long as a reserve amount of money is in your account.
Any unpaid interest will be added to the outstanding mortgage; any overpayment will reduce it. Some flexible mortgages have the facility to draw down additional funds, to a pre-agreed limit.
When you’re purchasing a commercial property the rules of standard mortgages change and lenders have all kinds of stipulations about what they’ll lend on and what they won’t.
Bridging finance was once viewed as a product only to be used perhaps when a property chain had broken down. It is now a more understood and accessible option, typically used by property investors across the UK.
The days of high street banks’ lending for development finance have long gone. These days you need to have a healthy deposit and some expertise on board to get any lender even willing to listen.