Flexible mortgages more important than ever
Just over two thirds (68 per cent) of those surveyed highlighted flexibility as a key ‘important’ feature, with 40 per cent of respondents underlining flexibility as ‘very important’, and 31 per cent stating that this flexibility had become even more important within the last year.
Questioned about the current factors affecting their enthusiasm for flexible mortgages, respondents cited the current low interest rate environment (18 per cent), with some highlighting their fears of possible future interest rate rises (22 per cent), as well as job security concerns(18 per cent). The ability to change payment options was a vital factor for 18 per cent of respondents. Only a relatively small percentage (11 per cent) were directly concerned about the affordability of mortgages.
Amongst the most favoured benefits from a mortgage with flexibility, over two thirds (68 per cent) of borrowers surveyed stressed the ability to alter the mortgage term, whilst just over half (53 per cent) were attracted by the possible options for payment holidays, and 67 per cent wanting early repayment options. Making it easier to move your mortgage to another property was seen as a major factor by just under two thirds (64 per cent) of respondents.
Information was also a key concern, with just over half of respondents (55 per cent) stating that they would like more details from banks to help understand the opportunities a mortgage with flexible benefits can provide.
Stephen Noakes, head of mortgages at Lloyds TSB, said: "It is important for customers that their mortgage offers flexible features. 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.
Date: 5th, May, 2010
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