It appears that many borrowers of flexible mortgages have a preference for lower risk and use the flexibility available to them to reduce debt. A survey conducted by the Council of Mortgage Lenders revealed that 25% of the people surveyed had doubled their regular monthly repayments or paid one-off lump sums to reduce their mortgage. However, over half of those with a flexible mortgage had not yet used its features.
Peter Williams, deputy director of the CML, said that while lenders find flexible loans more expensive to administer, they are an important means of helping borrowers meet their changing needs and to attract new business in the first place.