Just over two thirds (68%) of those surveyed highlighted flexibility as a key ‘important' feature, with 40% of respondents underlining flexibility as ‘very important', and 31% 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%), with some highlighting their fears of possible future interest rate rises (22%), as well as job security concerns(18%). The ability to change payment options was a vital factor for 18% of respondents. Only a relatively small percentage (11%) were directly concerned about the affordability of mortgages.
Amongst the most favoured benefits from a mortgage with flexibility, over two thirds (68%) of borrowers surveyed stressed the ability to alter the mortgage term, whilst just over half (53%) were attracted by the possible options for payment holidays, and 67% 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%) of respondents.
Information was also a key concern, with just over half of respondents (55%) 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.”