Nordea: "Loan Payment With FlexiPayment"

"Change your loan payment with FlexiPayment"

"Sometimes cash is up, sometimes it’s down. With FlexiPayment linked to your housing loan it is easier to balance your finances."

"When all bills seem to fall due in the same month, you can decrease the loan payment for that month or set it to zero without requesting the bank’s permission. Decreasing or skipping a monthly payment means that the loan period will extend correspondingly. And when it seems that you have some extra money, you can pay a bigger installment than normally - and shorten the loan period. In any case, you pay the loan interest every month; the right to change concerns installments only."

Thanks to Anton for the content. I have to say, I'm a bit shocked to read those kind of Bank recommendations in the middle of a credit crisis...On one hand, they might be trying to make solvable people that might not be in a longer term, and at the same time they are trying to stretch even more the consumer debt burden.

Effectively what they are trying to do is an interest only mortgage. That's one of the many reasons of the subprime crisis in the U.S.

Indeed affordability is stretched, so when you are at the peak then those kind of system are put in place...

I'm wondering what the Finnish Banking Watchdog is doing?