Intelligent Finance’s publication coincide with the launch of its self service offset proposition, which enables customers to choose between a shorter term, lower payments or reduced debt.
IFs findings revealed that almost three-quarters of borrowers wanted to reduce their mortgage term or increase their payments to reduce the balance over time.
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The research discovered that buyers were increasingly looking for flexibility in the terms of their mortgage, with almost half of borrowers believing their terms were restrictive.
Six in 10 mortgage holders were aware of the total cost of their mortgage over its full term, almost double that of 18 months ago.
Mark Parker, managing director at IF, said: “We now have a new generation of mortgage holders who view their finances holistically and want more flexibility and the option to pay off their mortgage as soon as possible, rather than go on borrowing into old age. Offsetting delivers exactly this. We’re putting mortgage holders in the driving seat, right where they belong.”
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Offset mortgages allow customers to reduce the amount of interest paid on a mortgage, instead of receiving interest on their savings, ISA or currant account.
David Sheppard, director at Principia Mortgages, commented: “As more people choose interest only mortgages, there are a lot of people who could benefit from offset straight away. I think offset mortgages are a great product, but more intermediaries need to take the time to explain them properly to clients so that they can realise what the advantages are to this type of product.”
