Home Buyers Guide

Chapter 6: Choosing the Right Mortgage

Step 2: Are there any flexible options you want in your mortgage?

When people are looking for a mortgage they usually look at the interest rates or the monthly payment to decide
on which lender to go with. (Of course these are really important elements which we will discuss later).

But the interest rate should only be one element to help you make the decision.

Here are some flexible options that you might find useful:

• Deferred Start

• Interest Only

• Overpayments

• Skip months

• Mortgage Holidays

Deferred Start

A deferred start mortgage is a mortgage where you can put off your first mortgage payment for a number of
months, usually 1 – 6 months. (In the current environment, you may find it hard to get a deferred start mortgage
unless you have a big deposit).

This can be useful as the first few months in a house tend to be very expensive, between decorating, buying
furniture and upfront fees such as legal fees etc.

The payments you defer are added to the mortgage balance and you pay them over the whole term of your
mortgage.

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