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Consumers seek flexible mortgages

Consumers seek flexible mortgages

Category: Mortgages

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

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 It is now over 6 months old so the content may be out of date.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."

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