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Overpayment top reason for picking flexible loan

Chelsea Building Society says the main reason that customers choose a flexible mortgage is to make overpayments.

Its research gauging the attitudes of 2,150 customers with flexible mortgages to coincide with the launch of its flexiplan discount loan found that 28 per cent of people wanted flexibility while 26 per cent wanted to make overpayments.

Twenty-nine per cent have made overpayments, 57 per cent intend to make overpayments in the future and 22 per cent have already made lump-sum repayments. The payment holiday option has been used by 8 per cent of borrowers.

Only 2 per cent have taken advantage of making underpayments and only 3 per cent intend to in the future.

The flexiplan discount mortgage gives a discount of 0.90 per cent off the society&#39s standard variable rate, giving it a payable rate of 4.79 per cent.

Public relations & corporate affairs controller Matthew Cape says: “The research shows borrowers&#39 confidence in managing their own finances.”

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