Hambleton Financial Services


mortgage brokers,

based in Northallerton

North Yorkshire

Established in 1986.

We specialise in arranging



first time buyer mortgages, buy to let mortgages,

buy to let re-mortgages,

life insurance,

critical illness cover,

 income protection,

redundancy cover,

buildings/contents cover


We are paid commission

from the lender

should your mortgage complete

Hambleton Financial Services

1, Boston Avenue


North Yorkshire




08000 196 194


01609 77 57 44


07980 868154


Privacy Statement

Hambleton Financial Services

Mortgage Brokers & Insurance Consultants

Home About Us Our Services Mortgages Protection Insurance Extras

Are  you still paying too much?

Looking after our

clients since 1986

The guidance contained within this website is subject to the UK regulatory regime

and is therefore primarily targeted at consumers based in the UK.

Hambleton Financial Services is an appointed representative of TenetLime Limited,

which is authorised and regulated by the Financial Conduct Authority.

 TenetLime Ltd is entered on the Financial Services Register (www.fca.org.uk/register)

under reference 311266

Partners: W P Martlew & J E Martlew

A mortgage is a loan secured against your home or property.

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Flexible Mortgage

The flexible mortgage is a relatively new type of mortgage,

or at least new in the UK.

It was invented and has been used in Australia for many years,

but is now growing in popularity in this country

as more and more lenders adopt it.

Background to Flexible Mortgages

The traditional UK mortgage

has been with us for many generations.

It was designed with the assumption that

people had full time employment and could therefore

cope with set monthly payments for a 25 year period.

However, as many people have discovered,

the traditional mortgage does not always

 cope well with modern employment trends,

such as contract working, self employment,

job sharing and part time work.

This is where the flexible mortgage comes in.

It has the facility for both over and underpayments

built into the loan.

What this means is you can overpay your mortgage

when finances allow (pay rise, bonus, an inheritance etc.),

and then, providing you have made overpayments in the past, underpay when finances are tight

(job loss, change in circumstance etc).

A Generic Example

If you overpay your loan by £50/month for say five years on a flexible mortgage, that cumulative amount is then made available as a cash reserve for you to draw on at any time during the remainder of the mortgage term.

This cash reserve can normally be drawn on for such things as, taking payment holidays or making large purchases.

Indeed some lenders actually issue the borrower with a cheque book and encourage them to use the account as an all encompassing bank account. However the amount you can withdraw is limited by the original sum of the loan.

The main benefit of borrowing against your 'mortgage account'

is that mortgages are usually the cheapest form of borrowing.

In other words, you'll pay less interest on the amount you borrow!

If on the other hand, you overpay but never make any withdrawals, you can save a significant amount of interest over the life of the loan.

This is because most lenders who offer this type of loan

calculate the interest you pay on a daily basis ,

therefore any overpayment comes immediately off the debt

and interest payments are adjusted accordingly.

You should be aware that by making use of the cash reserve facility,

(and unless you subsequently make sufficient overpayments)

 you will be increasing the amount owed on your mortgage.

This will increase your monthly mortgage payment, and will

in turn increase the total amount repayable over the mortgage term.