This new research from Abbey suggests that paying off the mortgage remains a top financial priority for people and despite a tough economic environment, only a very small number of people are taking a payment holiday (3%) and even fewer are planning to free up extra cash and make an underpayment (1%).
The Abbey study also found that one in 10 mortgagees will be looking to change their mortgage over the next six months.
Encouragingly for brokers another Abbey for Intermediaries study also found that one in 10 people with a mortgage product would be looking to switch it over the next six months, giving intermediaries the chance to build business levels by targeting those who want flexible mortgages.
Ricky Okey, managing director, Abbey for Intermediaries, commented: “During an economically turbulent time, homeowners are looking to take advantage of mortgages that offer flexibility to their monthly repayments.
“With one in ten mortgage customers looking to switch in the next six months, intermediaries have a great opportunity to capitalise on this trend by offering their clients flexible products”.
Abbey for Intermediaries has relaunched a range of Flexible Offset mortgages that as well as offering payment holidays and the capacity to underpay or overpay on monthly repayments, also comes with a savings pot to allow customers to offset savings against the money owed, reducing the interest charged and helping to pay the mortgage off early. The range includes a 75% LTV core product at 6.23% with a £1,499 booking fee.
