Have you looked in the mirror recently and suddenly felt motivated? Seen a vision of your body in 12 months time? You may have aspirations of toning, shapin or building big muscle—the concept seems a great idea now but how many of you will actually get up and do something?

Many of you may already use a gym, be perfectly happy with your body and not inclined by anything or anyone to change your routine. The idea of taking backwards or even sideways steps are completely unthinkable, even if it promises to enhance medium or long-term gain.

The mortgage market is very similar, as most people think no further than their local bank or building society to finance their dream property. They may use this route as it is convenient or may wish to use the existing relationship.

If they have a mortgage already they may never shop around or compare the current rates they are paying. They may feel short of time to transfer to another provider or they may be worried about penalties.

The fact is not comparing deals when taking a mortgage, or not reviewing the one you have could cost you thousands of pounds in extra interest. It is important to understand not just the headline interest rate applied but the way the interest is charged to the loan i.e. daily, monthly or even annually.

It's just not time to flex your muscles, but time to flex your mortgage too! Indeed a number of mortgage providers are giving customers the benefit of their flexible mortgage products. The aim is to reduce interest charged by calculating it on a daily basis. Overpayment creates reserve funds for the future, allowing draw down of additional funds at any time against the value of your property and most importantly no redemption penalties. 

When matched against traditional fixed, capped and discounted rates, flexible deals are standing up extremely well. This is not just in the substantial reduction of interest charges over the term but in the avoidance of heavy redemption charges as well. We have included an example for you to justify my views, comparing a current variable rate mortgage from a high street bank with arguably the most competitive flexible mortgage on the market.

High Street Bank

High street banks are unknown to charge between 1.5% and 1.75% above Bank of England base rate for their standard variable rate products. This could result in you paying thousands of pounds more interest than you need to. These mortgages tend to calculate the interest payable on a monthly or annual basis. This means that any capital that you pay off the loan in the preceding year is not taken into account until the following January. 

Flexible Direct Mortgage

This type of mortgage is normally charged at between 0.75% and 0.95% above Bank of England Base rate. Interest is calculated on a daily basis allowing you the benefit of any reduction in capital outstanding immediately. The lower interest rate is attained as most of these products are offered through direct providers who do not support an expensive high street presence. They can afford to lower their rates as an ongoing deal. We know you're looking for the catch - we've not found it yet!

Even if you do not get off the sofa and flex your muscles, while you're sitting there, pick up the phone and contact an independent mortgage adviser to review your mortgage. If you're thinking of taking a mortgage, then closely compare the deals being offered and look at the overall cost. Remember, if you flex your mortgage you could save thousands! 

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