One of the biggest changes for borrowers in recent years is the flexibility they can now expect. A number of the large lenders have very flexible policies in place, ranging from increased payments, payment holidays and paying less interest.

The main flexible option which nearly all lenders offer is to pay additional amounts each month. This of course pays off the loan more quickly and can save borrowers tens of thousands of pounds over the life of the loan.

For example, a £50 (€63.5) increase in repayments on a £100,000 (€127,000) loan would save £16,582 (€21,059) in interest repayments. Lenders say they have introduced such flexibility in line with changes in customers' lives. It is no longer the norm for a 25-year-old to stay in one or two pensionable jobs for life. People now take a year out or work abroad for short periods. The demands of a new baby are also financially onerous, and many choose to put off mortgage payments for a few months to cope with this change. Many customers can avail of this flexibility in a number of ways. They can agree to pay an amount that is in excess of their current monthly repayment, or to fix their repayment at a set amount above the required repayment.

They can also choose to make occasional lump sum payments in addition to their required monthly repayment. Any of these options will reduce the amount of interest they have to pay on their mortgage and will shorten the life of the loan.

Many lenders including Irish Permanent use any surplus cash paid through these options to fund payment holidays or underpayments.

For example, the normal repayments on a £100,000 (€127,000) loan over 25 years at a rate of 6.14 per cent is £652.88 (€829.16). If the repayments are increased by £50 (€63.5), over £16,500 (€20,955) would be saved in interest and the term reduced by three years and nine months. An additional £100 (€127) payment would save £27,959 (€35,508) and take six years and five months off the term.

Over-payments of £150 (€190.5) would save £36,326 (€46,134) and shorten the term by some eight years and eight months, while a £250 (€317.5) additional payment would save £47,912 (€60,848) and take 11 years and four months off the term. An additional £300 (€381) would save £52,111 (€66,180) and take off some 12 years and five months.

Many lenders also offer other services such as a break in repayments. Irish Permanent customers can avail of up to two "skip months" in any 12-month period. Repayments will be adjusted to make up the difference.

Many choose Christmas and summer holidays as months to skip when expenses are very high.

For first-time buyers there is a low start option which allows them to defer their initial three months' mortgage repayments. The money can then be used to furnish the home or buy essentials for moving in.

Payment holidays and agreed underpayment can also be negotiated. Previous surplus repayments can be used up in this way. But it is also possible to have up to three payment holidays in any three-year period.

These options would be very useful for anyone changing jobs, taking time off or otherwise facing a big change in their working lives.