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Sales of flexible mortgages up by 80%

Sales of flexible mortgages, which combine mortgage and savings accounts, rose by 80 per cent to £42bn in 2001 from £8.4bn in 2000, according to research by Britannic Money.

The survey of 53 brokers found that sales are set to inc-rease by another 40 per cent this year to £54bn.

The research revealed flexible mortgages account for 28 per cent of overall mortgage business in the UK and this is expected to rise to 38 per cent in the next 12 months.

Brokers said no redemption penalties, an overpayment facility and daily interest calculation were the top three features of flexible mortgages and estimated that 85 per cent of people are likely to consider such a loan.

Head of marketing Rachel Ramsden says: “Intermediaries are the best people to gauge the success of mortgage products and the res-earch clearly shows that consumers are choosing flexible mortgages over a conventional product.”

Riach Independent Financial Advisers IFA Bob Riach says: “I think current account mortgages are more for high-net-worth clients with savings as well as a mortgage rather than Mr Average.”

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