Alliance & Leicester says sales of its flexible mortgages have rocketed by almost 300 per cent in the last eight months.
A&L says at the start of the year flexible mortgages accounted for just over one in 10 of all mortgage applications it received.
But the figure shot up to just under a third by October, making flexible mortgages A&L's most popular product. It says customers regard flexible mortgages as a good way of controlling their money.
It believes the most appealing feature of the products is the ability to pay off loans early, offering borrowers the chance to make significant savings on the amount of interest paid on the loan.
A&L says it advises borrowers considering a flexible mortgage to look beyond the headline rate and consider the degree of flexibility.
It also stresses the importance of understanding the features of each mortgage and checking a loan is likely to suit their lifestyles.