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&#39Many borrowers are using flexible mortgage features&#39

Nearly half of flexible mortgage holders have taken advantage of their features, with many overpaying their loans by up to 100 per cent a month, according to new research.

The research by the Council of Mortgage Lenders and Office of the Deputy Prime Minister found that one in five borrowers have used the option to draw down equity from their home and a quarter have either doubled their repayments or paid a one-off lump sum to reduce their debt.

According to the report, the average flexible mortgage holder is slightly older and earns more than the average borrower while a third have savings of over £10,000.

CML deputy director Peter Williams says: “Flexible loans have been rapidly growing in popularity. At the moment, many borrowers are showing a strong preference for lower risk by using flexibility to reduce debt. While flexible loans may be more expensive to administer for lenders, they see them as an important means for attracting new borrowers and helping them meet their changing needs.”

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