Mortgage repayments can be flexible, fixed or set to interest only payments.
Your lender or building society should advise you on these options after having looked at your particular financial situation.
Let's take a case study for instance:
Joe Bloggs works for a reputable company as salesman. He earns an average salary, but also reaps benefits from quarterly commission cheques. Taking all his earnings into account Joe earns an above average income. The mortgage lender should make a study of Joe's particular situation.
In the above mentioned case study, given that Joe has a good gredit record
the lender should award a mortgage with a flexible mortgage repayment. This mortgage repayment scheme would allow Joe to make smaller payments in the months where he earns his normal salary, but contribute more when his commissions are awarded.
Jane on the other hand has a 9 to 5 office job and earns a steady average income. The lender should award her a fixed mortgage repayment loan which would give Jane the freedom to plan her budget accordingly.
James requires a buy to let mortgage and only needs a mortgage for a short period as he will resell the property, repay the full mortgage amount and make a profit on the sale. The lender could consider awarding a interest only mortgage repayment loan in such a situation.
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