IFAs expect flexible mortgages to make up at least onefifth of their mortgage business within the next year, according to a survey by len der Sun Bank.
Sun Bank questioned 250 IFAs in September and Oct ober, revealing advisers also predict flexible products will account for more than a third of all mortgage loans by 2001.
According to Sun Bank, 5 per cent of IFAs currently generate over half of their mortgage business through flexible mortgages. It expects this to increase to 9 per cent of IFAs by next year.
Sun Bank says 81 per cent of IFAs who responded to the survey support benchmarking for flexible mortgages.
The lender believes a set of criteria to establish what constitutes a flexible product will help to foster the growth of the market.
It also believes IFAs are especially important to the growing flexible market bec ause of the extensive variety of products available which could confuse consumers. Also, many borrowers may not take advantage of potential savings by remortgaging unless advised.
Sun Bank marketing director Chris Cummings says: “The growth in flexible mortgages can be largely attributed to changes in lifestyle, including more flexible work patterns. The number of self-employed, part-time and temporary contracts is on the increase, so traditional mortgage methods are not always the best option.”