68% of Lloyds TSB customers surveyed highlighted flexibility as a key ‘important’ feature in choosing a mortgage. 40% of respondents said flexibility was ‘very important’ while 31% stating that this flexibility had become even more important within the last year.
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%), as drivers for wanting flexibility.
The ability to change payment options was a vital factor for 18% of respondents. Only 11% were directly concerned about the affordability of mortgages.
Amongst the most favoured benefits from a mortgage with flexibility, 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 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