Mortgage Features
These days mortgages are far more flexible than they ever were. Just some of the additional features available on some mortgages are described below:
Reserve or drawdown facility: a pre-agreed extra borrowing amount available at any time
Overpayments: the facility to make additional capital repayments without being penalised by any early repayment charge
Underpayments or Payment Holiday: the ability to not pay the mortgage for a period of time, or make reduced payments.
Monthly or Daily Rest: any capital repayment is credited to the account either monthly or daily thereby reducing the interest paid with immediate effect
Cheque book facility: in conjunction with the reserve facility, you are given a cheque book; however it’s important to remember that this debt is secured on the property
Offset facility: the option to have a linked bank account whereby any funds reduce the amount of interest paid on the mortgage account
