Only 32 per cent of homeowners correctly scrutinise the associated fees when choosing a mortgage. Instead their attention is caputured by interest rates.
"It’s of grave concern that homeowners are placing most importance on low interest rates," said Louise Cuming, head of mortgages at moneysupermarket.com. "With fees having shot up over the past 12 months, people need to factor in the true cost of a mortgage rather than be tempted by the rate.
"For example, someone with a Yorkshire Building Society mortgage at 4.99 per cent would pay £1,200 more over two years than someone with Britannia at 5.94 per cent.2 It’s almost natural instinct for borrowers to believe a lower interest rate is better, but that isn't always the case."
The Mortgage Map research also found just 22 per cent of homeowners placing major importance on good customer service.
Cuming added: "It’s amazing there is such little regard is paid to customer service. Anyone who ever falls foul of increased mortgage payments will then realise just how important customer service is.
"It’s good to see people shopping around though. The survey found 60 per cent of homeowners chose their last mortgage either by comparing several options from different providers, searching online or going to a broker."
As few as 21 per cent of homeowners opted for a new mortgage with their current provider, believing better rates would be had by switching away.
In addition, almost half of the over-55s placed major importance on the good repuation of a lender.
