More than half of UK buyers would consider specialist mortgage lenders
More than half of UK homeowners (54%) would consider going with a specialist lender in their mortgage search, even if they had never met the provider before, according to a new report. Butterfield Mortgages Limited found.
The independent survey of 690 UK mortgage customers showed that 32% had used a broker to find their current mortgage, making it the most common method of getting a loan. Next come respondents who rely on their existing bank (24%) or obtain a new product from a former mortgage provider (21%).
Search engines were used by 19% of people when looking for a mortgage, 14% relied on word of mouth, while 8% used comparison websites.
When it comes to intermediaries, 62% of mortgage customers in the UK believe that brokers can find products that would not otherwise be available to them. Another 60% think working with intermediaries makes the application process easier.
Regarding the key factors influencing the choice of the product by the borrowers, “the terms of the loan” and “the additional fees to be paid” emerged as the most important; both were cited by 85% of customers as important considerations. Interest rates are a close second (84%), while fixed term length and ease of application are both considered important by 80% of customers.
The study also showed a growing appreciation of the green credentials of mortgage providers, with more than half of respondents (58%) considering the lender’s environmental and social policies to be important – this figure rises to 65% among 18-34 years old.
The Butterfield study also revealed a lack of satisfaction among homebuyers with the customer service they receive from current suppliers. The majority (69%) think lenders should offer more support with the mortgage or financing options available to borrowers, while 45% think their mortgage provider has poor communication.
Alpa Bhakta, CEO of Butterfield Mortgagessaid: “As the mortgage market continues to evolve, borrowers are increasingly looking beyond the ‘tick box’-centric methodology of many traditional lenders. Research shows that most mortgage buyers home would now consider specialist lenders, who might be able to offer greater flexibility or products better suited to their needs.
“The research also revealed clear concerns among mortgage customers about the levels of care they receive from their mortgage provider. With interest rates and inflation on the rise, lenders should take note: increased support is needed to help customers through this difficult economic climate. »