Flexible mortgage products such as current account mortgages have not been as popular as first expected despite their many benefits to borrowers.

While current account mortgages are relatively new to the UK market, experts have suggested that their take-up rate should be higher. Flexible mortgage products are extremely popular overseas because they can help borrowers reduce their mortgage term by several years.

The low popularity of current account mortgages in the UK is being blamed on two factors - high interest rates and poor marketing.

The interest rates attached to current account mortgages are generally higher than for standard products with similar loan-to-value ratios. Borrowers may see this as a deterrent before even assessing the overall nature of current account mortgages and the benefits they offer.

However, borrowers should be able to save interest over the life of their mortgage by offsetting the interest on their savings, which are usually held in a current account with the lender or included within the same line of credit as the mortgage itself.

While this may have been a deterrent in the past, things could be about to change as more competitive products are beginning to enter the market. Lenders have begun to release current account mortgages with interest rates closer to those of standard mortgage products. This should help to increase their popularity.

The other factor blamed for the poor take-up rate of current account mortgages is the limited exposure they receive in finance literature. Current account mortgages rarely features on "best buy" mortgage tables, therefore hindering borrowers' ability to directly compare the products against each other.

Borrowers are also unaware of the benefits of current account mortgages because few articles within the financial press mention such products. An increase in the expose of current account mortgages would increase public awareness of these products and help to make them more popular with home owners.

Current account mortgages, and other types of flexible mortgage products, are quite popular overseas because they help to streamline the borrowers' banking facilities and reduce the overall term of the mortgage.

The idea of having only one account to manage combined with the prospect of paying of their home sooner, has helped current account mortgages to secure a permanent place in the mortgage market overseas.

With an increase in marketing this trend may soon occur within the UK as well.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Facts on Forclosures
According to the Merriam-Webster dictionary foreclosure is defined as a legal proceeding that bars or extinguishes a mortgagor's right of redeeming a mortgaged estate. This proceeding is obviously no fun for the person who is going through it, However there are upsides to going through a ... more...

Refinancing Forclosures out of Hard Money
I would like to shed some light on refinancing hard money loans. Hard money loans can have an interest rate ranging from 8% to 22%, so refinancing into a 7% loan can save you interest expense. Most hard money refinances I see come from the purchases of foreclosure. Since the future of foreclosure ... more...

Financing Rental Properties
How to finance rental properties. It's 2008 and much has changed in the mortgage industry. Between the year 2000 and 2007, we could all get zero down mortgages on rental properties. Even if our credit scores were as low as 580. Credit was easy to obtain. The purpose of this article is to show you ... more...

Real Estate and Bank Forclosures Purchasing
There is a system employed when buying bank forclosures real estate that breaks down into six small steps. By using these as a guideline, forclosure homes will be simplified and it is possible to avoid common buyer mistakes. Step 1 ? Pre Approval: Shopping for bank forclosures without already ... more...