The bad news is right now all low rate mortgages are hard to find. Because of the credit crunch lenders have had to up their rates in an attempt to not only claw back some revenue, but also to sort the wheat from the chaff. Adverse borrowers who can only afford the low rates are just not wanted now the mortgage bubble has burst. And to an extent this is the same for low rate flexible mortgages. The rates of a few years ago have been replaced by more subdued rates above the lowest rates of a few summers ago. But can you still find any low rate flexible mortgages?
It has to be remembered that the rate isn’t all important: the credit crunch has meant people are going into hysterics about rising rates – but there is a lot more to a mortgage than a low rate and that must be remembered by people shopping for the mythical low rate flexible mortgages. Flexible mortgages can offer so much – holidays, overpay, cashback, low fees, no penalties, few clauses – that the rate becomes unimportant. You need to find a mortgage that has the right term, the right level and amount of fees, the right commercial loans to value ratio and must be from the right lender – if any of those things are not a part of the mortgage then the rate is moot.
So are low rate flexible mortgages impossible to find? Maybe they are. You could spend a long time trawling through all the flexible mortgages that are out there and not find the lowest rate attached to any of them. Or you could wait so long you choose an inflexible low rate deal that will come back to haunt you later on during the life of the mortgage. Because all of the searching and hoping for low rate flexible mortgages means you cannot see the wood for the trees – flexibility is infinitely more important than any rate.
Flexibility means you can have a payment holiday. It means you can invest more or less into your mortgage depending on your situation. It means you can take money out of the mortgage to help with debt, investment or whatever you need. Low rate flexible mortgages may do all this for less money each month but a good Melbourne mortgage broker will tell you that having the choices that a flexible mortgage offers will save you money in the long run anyway. Low rate flexible mortgages are just not worth worrying about.