Flexible mortgage useful in the event of unexpected events

Less than half of Britons expected a financially significant event to affect them over the past two years, according to new research.

This comes despite the figures, published by Abbey Mortgages, revealing that 15 million UK residents had suffered financially as the result of a life change over the same period.

As a result, the report's authors called on homeowners to take out adequate care to protect themselves in the event of changes affecting their ability to make their monthly mortgage repayments.

"Making sure you have sufficient protection to cover job loss or illness when you have a big commitment such as a mortgage is one way of being prepared," said Nici Audhlam-Gardiner, head of mortgages at the lender. "Another option is to give yourself a degree of flexibility."

"For instance a new job that requires relocation could be a real pain if you are tied into a mortgage deal. Having a flexible mortgage could save you paying over the odds if your circumstances change."

Last month, Chris Cummings, the director-general of the Association of Mortgage Intermediaries, called on lenders and brokers to work together to assist homeowners facing difficulties in keeping up with their mortgage commitments.

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