Undertaken at the end of September, the research conducted among over 1400 intermediaries showed that 69 per cent of intermediaries reported an increase in the number of applicants requesting flexible features on their tracker mortgages from last year.
UCB Home Loans managing director Keith Astill said: “Providing borrowers with the option of flexibility with their mortgage has always been an important part of our proposition. We recognise that in the buy-to-let and self-cert sectors, both landlords and the self-employed may experience fluctuations in the level of income they receive from one month to another. Therefore, having a mortgage which allows them to either underpay, overpay, or take the odd payment holiday can make managing their mortgage so much easier and fits their individual circumstances.
“Flexibility is another filter that intermediaries could consider when sourcing a mortgage product for their client. With seven-out-of ten intermediaries reporting that the number of mortgage applicants requesting flexibility is increasing, I think this is an indication of the way in which the market is developing.”
Other results from the research show:
- 64 per cent of intermediaries report tracker mortgages being at least as popular as they were a year ago, of whom 32 per cent report an increase in popularity.
- 71 per cent expect the current level of tracker popularity to remain the same over the coming year.
- 84 per cent say that two-year tracker products are the most popular choice for borrowers.
- 76 per cent believe that applicants are choosing tracker mortgages because they do not expect the Bank of England base rate to increase significantly over the next few years.
- 94 per cent believe that mortgage applicants feel relatively stable in their jobs at present.
