Written by George Sweeney Reviewed by Lee Trett
Sources
20 May 2026
Full rewrite to bring page up to date
28 November 2020
First Published
If you’re looking for a home loan that offers more control over your repayments, a flexible mortgage could be worth considering. Here, we explain what a flexible mortgage is, the features these products can offer, how flexible mortgage rates compare, and where to find the best mortgage deals for your needs.
What is a flexible mortgage?
It’s a type of mortgage that allows borrowers to adjust how they manage their repayments through a range of features and payment options, within limits set by the lender.
Rather than being locked into rigid monthly payments, flexible mortgages can offer features such as overpayments, underpayments, payment holidays, or access to previously overpaid funds.
The idea behind a flexible home loan structure is to give borrowers more control over their mortgage, particularly if their income fluctuates or they want the option to repay it faster.
What features do these mortgages offer?
This type of mortgage can include a range of features depending on the lender and product. Some flexible mortgage loans include all of the options below, while others offer only certain elements:
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Overpayments: Most flexible mortgages allow you to make overpayments. This can help reduce the overall interest you pay and shorten your term. Some lenders cap how much you can overpay each year without triggering early repayment charges (ERCs), while others offer unlimited overpayments.
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Underpayments: If you’ve previously overpaid your mortgage, a small number of lenders may allow you to reduce future monthly payments temporarily. This can provide additional breathing room during periods when your finances are tighter.
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Payment holidays: This is the ability to pause your monthly repayments for a short period. Usually, it’s only available if you’ve built up enough overpayments in advance or in specific situations, and interest will often continue to accrue during the payment holiday period.
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Borrow back facility: Some flexible mortgage loans allow you to “borrow back” previous overpayments. For example, if you’ve overpaid your mortgage balance by a few thousand pounds, you may be able to withdraw some of those funds later if needed.
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Offset facilities: Offset flexible mortgages work by linking your savings account to your mortgage balance. Instead of earning interest on your savings, your savings reduce the amount of mortgage interest you pay. This could help lower your monthly payments or reduce your mortgage term.
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Daily interest calculation: Some flexible rate mortgages calculate interest daily rather than monthly. This means overpayments can start reducing your interest charges more quickly.
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Mortgage Porting: Porting your mortgage to a new property is a valuable benefit offered by some lenders. Without incurring an ERC or changing any terms, you may be able to switch your mortgage to the new property, assuming the valuation is acceptable.
Are flexible mortgages worth it?
Flexible mortgages can be worthwhile if you value repayment flexibility or want more control over how you manage your mortgage. This type of home loan is often popular with:
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Self-employed borrowers
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People with fluctuating income
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Borrowers expecting bonuses, commission, or irregular income
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Homeowners wanting to repay their mortgage faster
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People who may occasionally need payment flexibility
However, flexible mortgage rates can sometimes be higher than those of standard mortgage products due to the additional features offered. And, certain lenders restrict flexible features to tracker mortgages only.
For some borrowers, paying a slightly higher flexible mortgage rate can still be a decent trade-off if you regularly use the flexibility features.
How to get a flexible mortgage
Getting a flexible mortgage usually follows a similar process to applying for a standard mortgage. However, there are a few key differences, as lenders can vary significantly in the flexibility they offer:
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Assess the type of flexibility you need: Flexible mortgages can offer a range of features, but not all lenders allow the same options. Before comparing deals, it’s important to decide which features are most relevant to you. This helps to first narrow down the most suitable lenders and products.
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Speak with a broker: An experienced mortgage broker can help you identify lenders that offer the specific type of flexibility you’re looking for, particularly if you need an offset flexible mortgage or your circumstances are complex. They can also compare flexible mortgage rates across the wider market and assess whether the added flexibility justifies any extra cost.
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Submit your application: Once you’ve chosen a lender that offers terms that suit your needs, the application process will involve affordability checks, a credit evaluation, and a property valuation. If approved, the lender will issue a formal mortgage offer outlining the interest rate, repayment structure, and any flexible features included.
If you’d like to compare flexible mortgage deals or discuss your options with an experienced mortgage advisor, you can get started here.
Explore your mortgage options
Flexible mortgage calculator
If you’re considering a flexible mortgage, it’s useful to understand how features such as overpayments or offsetting could affect your mortgage balance and repayments over time.
Using our flexible mortgage calculator below, you can work out how making overpayments could reduce your mortgage term and save interest over the long run:
We also have an offset mortgage calculator to help you estimate how linking your savings to your mortgage balance may affect your repayments and overall borrowing costs.
Flexible mortgage lenders in the UK
Here are a few examples of popular high street UK lenders that may offer flexible mortgage features to some applicants:
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NatWest: Allows mortgage overpayments of up to 20% fee-free (each year) on certain fixed and tracker mortgages, and payment holidays on some of its home loans. NatWest's flexible mortgage options may also allow underpayments if you’ve previously overpaid.
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Santander: Offers flexible mortgage features, including overpayment and offset options. The flexible offset mortgage from Santander tracks the base rate and links your savings accounts to your mortgage balance to help reduce the interest you pay.
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Royal Bank of Scotland (RBS): Offers flexible mortgages and offset flexible mortgage products that allow you to offset savings against your mortgage balance. The RBS flexible mortgage features can include overpayments (lump sum or regular) and payment holidays.
Keep in mind, some lenders also offer elements of mortgage flexibility without formally branding their products as “flexible mortgages”, which is why it’s important to compare the wider market carefully.
Flexible buy-to-let mortgages
Flexible buy-to-let (BTL) mortgages are available from some lenders, although the pool of options may be more limited than for standard flexible residential mortgages.
Features such as overpayments, offsetting, or payment flexibility can sometimes be useful for landlords managing variable rental income or multiple properties.
However, flexible buy-to-let mortgages may come with:
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Higher interest rates
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Lower maximum loan-to-values (LTVs)
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Additional affordability or rental stress testing
Because lender criteria for flexible BTL products can vary significantly, speaking with a specialist broker is often the best way to identify suitable buy-to-let lenders with competitive rates.
Why choose Money Helpdesk for your flexible mortgage?
Flexible mortgages can be more complex than standard mortgages, particularly when comparing repayment features, offset facilities, and the overall borrowing costs.
Here’s why borrowers across the UK use Money Helpdesk when comparing flexible mortgage deals:
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Access to experienced advisors who understand flexible mortgages
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Whole-of-market comparisons across flexible mortgage lenders
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Support comparing offset, tracker, fixed, and flexible mortgages
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Free initial chat with no obligation to proceed further
If you’d like to compare the latest flexible mortgage rates or discuss whether a flexible mortgage loan is suitable for your circumstances, you can get started here.
FAQs
The most effective approach is usually to compare flexible mortgage rates across multiple lenders and speak with a broker who understands which lenders offer the most competitive flexible mortgage products.
Also, some flexible mortgage deals may only be available through brokers or specialist lenders.
Some lifetime mortgage providers offer flexible repayment options, such as voluntary overpayments without early repayment charges.
However, flexible lifetime mortgages differ from standard flexible residential mortgages, so it’s important to review the specific terms carefully with an expert equity release advisor.
Yes, a few lenders may offer flexible interest-only mortgage products with features such as overpayment, offset facilities, or some type of part and part mortgage arrangement.
Keep in mind, lenders usually require a suitable repayment strategy for the interest-only portion of the mortgage.
Sometimes. Flexible mortgage rates can be slightly higher than those of standard mortgage products because of the additional repayment features and flexibility they offer. However, if you regularly make overpayments or use offsetting facilities effectively, the overall savings can still outweigh the higher interest rate.