Consumers seek flexible mortgages - Mortgages - News - Moneyfacts

News

Consumers seek flexible mortgages

Consumers seek flexible mortgages

Category: Mortgages

Updated: 04/05/2010
First Published: 04/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A snapshot of homeowners' attitudes towards mortgages has found that flexible benefits are now more important to customers than ever before.

The range of benefits available to customers has increased markedly over the years, with a range of options now available.

They include early repayment options, payment holidays, the ability to have up to two guarantors and being able to top-up payments.

Products designed specifically for first time buyers have also found favour.

Research conducted by Lloyds TSB has found that consumers have welcomed these new options, with 68% of respondents saying that flexible options were an important feature of the mortgage.

Four in ten said that flexibility was 'very important,' while more than three in ten (31%) said that the circumstances of the last 12 months had meant that options to change the terms of the mortgage had become more important than they were in the previous year.

When asked about the current factors that affected their outlook on flexible mortgages, 18% pointed to the low interest rate environment which has seen repayments dwindle on many tracker deals.

The most popular benefit of a flexible mortgage was the chance to lessen the term of a mortgage, with 68% citing it as the main attraction, while 53% said the possibility of a payment holiday was their favourite feature.

More than half of respondents (55%) said that lenders should provide more details about the benefits of picking a mortgage with flexible options.

"It is important for customers that their mortgage offers flexible features," said Stephen Noakes, head of mortgages at Lloyds TSB.

"Our research shows that customers want to have a greater degree of control over how much they pay, and have the opportunity to flex payments dependent on economic conditions."

Find the best mortgage for you - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

The time is now for remortgaging

Mortgage borrowers have been urged to review their existing deals after it was revealed that remortgage opportunities continue to flourish in the post-Brexit vote world.

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.
 
Close