Mortgage Broker Marketing » Britons

Which mortgage features attract consumers to their mortgage lender?

admin — Wed, 06 Jan 2010 15:34:26 +0000

The feeling of security afforded by a fixed interest rate is the most popular feature for UK consumers when it comes to choosing a mortgage, a survey by checkmyfile. com has found.

The 2006 Mortgage Lender Survey found fixed interest rates, closely followed by the reputation of the lender as the top two attributes most likely to make Britons choose a mortgage product.

The survey also found that consumers generally regarded features such as higher lending multiples and the absence of higher lending charges – the fees charged by lenders when extending loans of more than 75 per cent of the value of the property – were amongst the least popular reasons for choosing a mortgage provider.

Barry Stamp, Joint Managing Director of checkmyfile. com, the UK’s leading provider of online credit files to consumers, said: “Our survey suggests the average UK consumer tends to be much more cautious when choosing a mortgage, compared to choosing other forms of credit which tend to be crisis-led. Consumers look for some stability when it comes to what is likely to be their largest monthly outgoing. Despite the relatively stable interest rate environment we have enjoyed for some years, they are keen to protect themselves from interest rate shocks. ”

The motivation for choosing a mortgage was found to differ between the genders in two distinct ways.

Barry Stamp added: “The top priority for men, when it comes to choosing a mortgage, is a fixed interest rate. Women, on the other hand, look at the reputation of a lender as the most important factor in choosing a mortgage. Getting a quick decision is also a key factor for men. Women are far less concerned about how quickly their mortgage offer appears. ”

As consumers get older, the key factors in choosing a mortgage product also change.

“Consumers in their 20s tend to look for the security offered by fixed rate mortgages, the reputation of the lender and the level of fees charged. They are not so concerned about how quickly they get confirmation of their mortgage offer – probably as they have no prior experience to base an expectation of the time a mortgage application can take.

“Consumers in their 30s also look to fixing their interest rate, and are more likely to be an existing customer of the lender. They are, however, looking for a quick decision on their mortgage offer.

“When a consumer reaches their 50s, their priorities have changed significantly. The top priorities for this age group are to choose a mortgage that gives them the ability to vary repayments and they are keen to choose a lender with a strong reputation. A quick mortgage offer in writing is also a key priority,” said Stamp.

With the reputation of mortgage lenders being the second most important factor for UK consumers in their choice of mortgage, the 2006 Mortgage Lender Survey asked respondents about the customer service levels of the top UK mortgage lenders.

60% of respondents to the survey rated the standard of customer service provided by mortgage lenders as ‘excellent’ or ‘very good’. One in six consumers were dissatisfied with the standard of customer service received.

Northern Rock and Nationwide were rated by respondents as the best mortgage lenders for their high standards of customer service. At the other end of the scale were Halifax and Barclays.

The full results of the 2006 Mortgage Lender Survey can be viewed online on checkmyfile. com.
checkmyfile. com has found.

The 2006 Mortgage Lender Survey found fixed interest rates, closely followed by the reputation of the lender as the top two attributes most likely to make Britons choose a mortgage product.

The motivation for choosing a mortgage was found to differ between the genders in two distinct ways.

As consumers get older, the key factors in choosing a mortgage product also change.

Northern Rock and Nationwide were rated by respondents as the best mortgage lenders for their high standards of customer service. At the other end of the scale were Halifax and Barclays.

The full results of the 2006 Mortgage Lender Survey can be viewed online on checkmyfile. com.

Homeowners Foresee Long-term Mortgage Commitment

admin — Sun, 13 Dec 2009 10:47:30 +0000

More than a third of homeowners predict they will be nearing retirement before they own their own home, new research suggests.
Responding to a One Account survey, 36 per cent of homeowners predicted they would be at least 60-years-olds before they paid off their mortgage.
A further 20 per cent didn’t expect to fully pay off their mortgage until some time in their 50s, with many also complaining that mortgage commitments were impeding on other areas of their life.
More than two in five claimed not to be able to save because of their mortgage, while nearly one in five 25 to 29-year-olds said it was forcing them to delay starting a family.
However, Debbie Milsom from One Account questioned why homeowners were finding their mortgage such a burden.
Paying off a mortgage should not mean that people have to put their life plans on hold, Ms Milsom said.
She added: It is worrying that homeowners perceive that it will take them until they are in their 60s before they pay it off when they should be spending this time preparing financially for their futures.
Ms Milsom reminded homeowners that there are often flexible solutions for managing payments.
Homeowners with overly expensive payments may also find remortgaging can help to reduce their monthly commitment.
As less people are putting money into pensions, more could begin looking at remortgaging to ensure economic stability during their later years.
Figures released by Moneyfacts have shown that personal pension returns have fallen by as much as a half in the last decade.
The news means that even if Britons are putting the same amount of money into their pension pot every year, their average with-profits pension fund could be half what it would have been in 1996.
These latest figures should serve as a powerful reminder that securing a comfortable retirement will only be possible for those individuals who actively monitor and manage their own pension provision, warned Richard Eagling, editor of Investment, Life & Pensions at Moneyfacts.
The research from Moneyfacts could cause more people to consider other options of financing their retirement, with taking out a remortgaging and downsizing their homes one method to increase the amount of money available in later life.

Millions Rely On Fictional Mortgage Benefit

admin — Sun, 13 Dec 2009 03:43:42 +0000

Around 3. 85 million home owners believe that a non existent state benefit will enable them to keep up with mortgage repayments in the event of losing their income.
Almost one in ten home owners wrongly believe that the government will pay their mortgage if they are unable to do so for reasons such as redundancy or illness, according to new research.
However, the government will not help anyone with mortgage payments for the first nine months of unemployment and after that, unemployment assistance is only offered to a select group of people who have mortgages of less than £100,000.
A further seven per cent of those surveyed by Lincoln Financial Group were not sure whether government assistance is available, and were seemingly unaware that the last Conservative government scrapped state aid in 1995.
Ian Noble, head of strategic partnerships at Lincoln Financial Group, said that the figures were a warning that million of Britons are enjoying a false sense of financial security, believing that the government will provide financial assistance if and when required.
“That is not the case unfortunately. The government is not going to pay for your mortgage if you lose your job, and assuming that it will place people in real danger is a large risk as it suggests they have no other mortgage protection plan in place,” said Mr. Noble.
Indicative of this perhaps is the news that mortgage repossessions are still continuing to rise dramatically, with repossession orders in England and Wales in the first three months of 2006 witnessing a 57 per cent rise.
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Refused Credit Mortgages Set To “grow And Grow”

admin — Sat, 12 Dec 2009 13:33:34 +0000

Refused credit mortgages set to “grow and grow”
14/08/2006 16:25:00
The sub-prime and near-prime mortgage market is tipped to grow and grow following new research.
A survey commissioned by Alliance & Leicester indicates greater demand for refused credit mortgages could be forthcoming, with four in five brokers expecting the market to grow.
The top reasons for borrowers to seek out a sub-prime or near-prime market are defaulting on debts or credit cards payments or simply having a bad credit rating, the research found.
Figures indicate that Britons are increasingly struggling to manager existing debts, suggesting that the potential market for sub-prime mortgages could swell.
Around two lenders in five report that the typical sub-prime customer is likely to be struggling financially, with many on a low income.
More than 85 per cent of brokers also report that customers are now realising that a sub or near prime mortgage can help rebuild a poor credit score.
Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: This market is becoming increasingly competitive with more lenders offering these specialised mortgages.
It is encouraging to see that brokers say their clients know the value of these type of mortgages and that it is a good way of getting potential buyers on the housing ladder while enabling them to repair their credit history by maintaining regular payments on their financial commitments.
Datamonitor estimates that 9. 1 million people were refused credit by mainstream lenders in 2005, further indicative of potential growth in the refused credit mortgage market.
Personal debt has already crossed the £1 trillion barrier and the rising insolvency rate suggests that borrowers are struggling to cope, indicating a growing demand for refused-credit mortgages in the future.
As traditional lenders were tightening their criteria, the refused credit market could prove ever more attractive and other high street lenders were also likely to start catering for those with a ‘slightly lower credit profile’.
As more lenders capitalise on this growing market, the increased competition could see better deals for mortgage holders.