Study highlights pressing issues that both consumers and brokers are facing
Rapid rate changes are causing stress and huge inefficiencies for mortgage brokers, results of a recent study have shown.
The research called Project Athena – carried out in collaboration between Pegasus Insight and Mortgage Marketing Forum – highlighted the pressing issues that both consumers and brokers are facing within the fast-changing mortgage market.
According to the study, six in 10 or 61% of consumers believe that it is not a good time to be looking for a mortgage, while a larger proportion – almost three quarters or 73% – have had to make cutbacks on expenditure amid economic and market conditions, with dining out and takeaways being a key cut back area.
Findings from Project Athena also showed a change in behaviours and attitudes, driven by time constraints and the changing importance of business development managers.
“This study has thrown up so many challenges, issues, and solutions for the mortgage market,” commented Mark Long (pictured right), director at Pegasus Insight. “It was clear, for example, that many consumers lack essential knowledge about mortgages, lender decisions, and general economic factors, and this has created stress and uncertainty.
“Brokers also spoke about a large pool of consumers who have never experienced interest rate rises before – “Generation Low or GenLow” – who are struggling to adapt to the changing market conditions.”
“We have seen a rapidly changing market in a short space of time,” added Jeff Knight (pictured left), director at Mortgage Marketing Forum. “The market has been on the back foot for a long time since the pandemic began. This has led to widespread stress, uncertainty, and inefficiencies.
“The time for change is now, and this study reveals the solutions that mortgage brokers want to see lenders implement. Simple, strategic changes are required that will lead to a calmer, more efficient market.”
The project, launched in August, conducted the research between September 13 and October 5, with over 3,000 consumers surveyed and 17 mortgage brokers interviewed as part of the qualitative study.
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