The study, which questioned 1,400 mortgage intermediaries, showed that 69 per cent reported an increase in the number of applicants requesting flexible features on their tracker mortgages since last year.
Commenting, Keith Astill, managing director at UCB Home Loans, said: “Providing borrowers with the option of flexibility with their mortgage has always been an important part of our proposition. In the buy-to-let (BTL) and self-certification sectors, both landlords and the self-employed may experience fluctuations in the level of income they receive from one month to another.
“Therefore, a mortgage that allows them to either overpay, underpay or take the odd payment holiday can make managing their mortgage much easier. Flexibility is another filter that intermediaries could consider when sourcing a mortgage product for their client.”
“With seven out of 10 brokers reporting that the number of mortgage applicants requesting flexibility is increasing, this is an indication of the way the market is developing.”
The research also showed that 84 per cent of brokers said two-year tracker products were currently the most popular choice for borrowers, while 32 per cent said they expected this popularity to increase. 76 per cent of respondents also believed applicants were choosing tracker mortgages because they did not expect the Bank of England Base Rate (BBR) to increase significantly over the next few years.
Nick Gardner, director at Chase de Vere Mortgage Management, agreed that there had been an upward trend towards flexible mortgages. He said: “It’s fair to say flexibility is a key priority for many borrowers now, particularly with the uncertainty surrounding interest rates. There are many good deals with no early repayment charges, and people like the flexibility these products offer.”
