Flexible Mortgage UK | Consumer Benefits From Loan Flexibility

Before the flexible mortgage UK consumers were stuck with rigid mortgage products that took little account of their personal financial needs. Before the flexible mortgage UK homeowners paid a set amount for their mortgage and were unlikely to get any benefit from their savings. Before the flexible mortgage, there was little prospect of ending a mortgage prior to the end of the term and those who did potentially faced a variety of hefty charges. All that has changed.

Unbelievably, it's only been a few years since lenders took the flexible mortgage UK-wide. Early flexible mortgage providers were First Active and Virgin, the latter with a current account mortgage that is still popular today. In the market for the flexible mortgage UK lenders now number around 50 , and the number of deals is increasing weekly*.

Over the past five years, the flexible mortgage UK market has increased by more than 77 per cent a year and Datamonitor estimates that 50 percent of mortgages in 2010 will be flexible mortgage products**. According the financial statistics provider, with the flexible mortgage UK lenders have outperformed the rest of the mortgage market.

Changing Flexible Mortgage Market

Research also suggests that the flexible mortgage UK market is changing. Early take up of flexible mortgage products was primarily by well-off people with a large savings balance, but many flexible mortgage lenders are now aiming their products across the spectrum. In fact, with more than one flexible mortgage provider UK consumers do not even have to have any savings, although those who are planning to offset will find it easier to do so with a savings account. And with a flexible mortgage UK consumers no longer have to automatically switch all their accounts to a single provider. Instead, many flexible and offset mortgage deals allow homebuyers to retain their existing accounts and reduce their mortgage balance by direct debit.

To add to the appeal of the flexible mortgage UK lenders have included a number of flexible features. These include the ability to overpay on the mortgage. This is usually limited on some flexible mortgage deals, but clearing 5 or 10 per cent of a flexible mortgage per year is nothing to sniff at. Even more interesting for homebuyers is the increase in the number of deals offering underpayment, payment holidays and borrow back. With borrow back on a flexible mortgage UK homeowners can reclaim the money they have previously overpaid - and sometimes they don't even have to ask. However underpayments and payment holidays could increase the mortgage term and/or the total amount payable. And flexible mortgages now take account of the fact that people are buying homes and having families later, so the chance to underpay or take payment holidays when circumstances change appeals to many flexible mortgage holders.

And there's a final twist to the flexibility of flexible mortgages. UK consumers can now find flexible mortgages to suit a wide range of circumstances. Whether homebuyers want a fixed or tracker deal, a low initial rate or a low long term repayment, there's bound to be a flexible mortgage that meets the criteria. And for fans of the flexible mortgage UK lenders also offer flexible buy to let and self certification mortgages.

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© 2007 and 2008 Offset Mortgage Centre | Terms and Conditions | Privacy Statement | We don't charge a fee for admistration of an offset mortgage. The Offset Mortgage Centre is the trading name of The Mortgage Broker Ltd, (a whole of market mortgage broker), which is an appointed representative of Home of Choice Limited, which is authorised and regulated by the Financial Services Authority | Your home may be repossessed if you do not keep up repayments on your mortgage. *Source - JPMorgan March 2007: Flexible mortgages continue to grow in popularity. **Source: Datamonitor - Uk Flexible Mortgages 2006 Report. In general Buy to Let mortgages are not regulated by the Financial Services Authority.